Asian high-yield debt emerges as global winner in bond markets

Market_performance: Asian high-yield, or 'junk', dollar bonds have recently outperformed comparable high-yield debt in major markets and have become one of the strongest segments in global bond returns over 2026. Yield_differential: The performance of Asian high-yield bonds is being reinforced by a historically wide gap between low Chinese benchmark yields and much higher yields in the United States and other Western markets, making Chinese-linked issuance relatively attractive. China_monetary_policy: China’s bond market is benefiting from persistently low domestic interest rates and accommodative monetary policy, which keep funding costs cheap for issuers and support demand for their debt.