Beijing

INVESTORS in Chinese company bonds have so far avoided the brunt of a debt sell-off that's driven 10-year sovereign yields to the highest in three years. Their luck may be about to run out.

Now that the Communist Party Congress is over, China's bond holders may be about to get hit by "daggers falling from the sky", said Huachuang Securities Co, referring to aggressive deleveraging policies. Plus, accelerating inflation and the risk that China's central bank may follow the Federal Reserve in raising borrowing costs are casting a shadow over the entire bond market.