Capital Outflows In China Bond Market To Slow Down: Yicai

The net outflows from the Chinese bond market may decelerate, likely less than CNY100 billion per month in May and June, as short-term investors have priced in the inversion of China-U.S. government-bond yield and yuan tend to stabilize in the coming months, Yicai.com reported citing Liu Linan, managing director of Deutsche Bank. The U.S. 10-year Treasury bond yield may rise to 3.3% in Q3 while that of 10-year China Government Bond may fluctuate between 2.7-3%, Liu was cited as saying. There is no need to worry about yuan, as it is traded at the midpoint of the fluctuation range in the past four years, reflecting rational market sentiment, Liu was cited as saying.