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World's biggest bond traders get positive on negative yields

Savvy fund managers bank on China to turn in a profit.

Those with the most dollars to lend are the belles of the bond-market ball, and that's where China comes in. The People's Bank of China (left) holds US$3.2 trillion of currency reserves, the world's largest hoard, and about 60 per cent of that is in dollars.

New York

IT MIGHT be considered absurd, if not for the unprecedented contortions in global financial markets.  Pacific Investment Management Co's largest international bond fund and China are piling into negative-yielding Japanese debt, buying securities that pay out less than the...

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