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CHINA PRESS: Foreign Holdings Of Yuan Bonds Keep Falling

CHINA PRESS

Foreign investors have reduced their holdings of yuan bonds, as room for arbitrage via swap transactions narrowed as U.S. treasury yields soar, Yicai.com reported. By end-November, foreign investors held a total CNY4.15 trillion of bonds in China interbank markets, falling from the previous month’s CNY4.25 trillion, the newspaper said. Foreign holdings have fallen every month since hitting an all-time high of CNY4.52 trillion in August and now account for 2.7% of China's interbank bond market, said Yicai.

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Foreign investors have reduced their holdings of yuan bonds, as room for arbitrage via swap transactions narrowed as U.S. treasury yields soar, Yicai.com reported. By end-November, foreign investors held a total CNY4.15 trillion of bonds in China interbank markets, falling from the previous month’s CNY4.25 trillion, the newspaper said. Foreign holdings have fallen every month since hitting an all-time high of CNY4.52 trillion in August and now account for 2.7% of China's interbank bond market, said Yicai.