(Bloomberg) -- The highest yields in a decade for Chinese junk bonds are not fazing global credit markets.

While contagion risk fears over China Evergrande Group’s deepening liquidity crisis are sending yields on the country’s riskier notes soaring to 20%, other debt markets are so far showing relative calm.

Yields on the broader pool of junk-rated emerging market debt and CCC rated U.S. bonds have been steadier, even as sliding bond prices send yields on Chinese dollar junk notes --  a sector dominated by property developers -- ever higher. 

In a sign that the Chinese government’s actions could help reduce the bearishness in the debt market, prices on the nation’s dollar junk bonds rebounded Friday. They rose as much as 5 cents on the dollar, according to credit traders. Market sentiment was boosted by signs the Chinese government is partly loosening restrictions in the stressed property sector.

(Adds gains in China high-yield bonds in fourth paragraph.)

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