Global asset managers are increasing their holdings of Chinese government bonds due to their low correlation with Western markets, driven by the Iran war. This shift is not about yield but about diversification. The war has created a new dynamic in global finance, prompting investors to look beyond traditional markets.

Schizoidman argues that asset managers have been adding Chinese government bonds to their portfolios since the Iran war broke out, drawn not by yield but by their near-zero correlation with Western markets. This position is supported by the low correlation of Chinese bonds with Western assets, making them an attractive option for diversification.

The community consensus is that the Iran war has led global asset managers to seek Chinese government bonds as a low-correlation investment option despite their yield. The debate highlights a growing trend in global finance, with investors looking for alternative assets to hedge against geopolitical risks.