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CHINA PRESS: Foreign Investors Keep Buying Yuan Bonds

CHINA PRESS

Overseas institutions increased overall yuan bond holdings to CNY4.5 trillion in July, up CNY1.26 trillion over the past 11 consecutive months of growth, Securities Daily reported. Interest spread trading and increased demand for yuan assets as a safe-haven choice had supported the growth, the news outlet reported, citing Yu Lifeng, an analyst at Golden Credit Rating. Yu noted revenue from holding a one-year interbank deposit certificate and simultaneously signing a one-year forward contract was 6.04% by end-July, higher than U.S. dollars' overseas borrowing costs, Yu added.

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