As April Fools' Day jokes go, they potentially do not get much bigger than China’s inclusion into three of Bloomberg’s bond indices. And it is certainly not one that any financial market participant wants to be on the receiving end of as they watch Chinese bonds start to take their rightful place on the international stage.
Index inclusion represents a transformational event on many levels. As former US policy advisor Jimmy Carville once said - if re-incarnation existed then he wanted to come back as the bond market because it gets to intimidate everyone.
And that is exactly how many foreign fund managers are feeling right now...
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