Bonds stage rally after sliding in August

Singapore

THREE weeks ago, Bill Gross said economic turmoil in China would support long-term Treasuries. While bonds slid in August, a rally on Tuesday combined with a selloff in China shares shows it may be too soon to start betting against US government debt.

Mr Gross, who built the Pimco Total Return Fund into the world's biggest bond fund, said China's decision to devalue its currency pointed to weak gl…