State-Backed Media Flags Stable Expectations Re: CNY FX Markets

MNI (London) - RTRS headlines note that foreign investors lodged net purchases of onshore CNY-denominated bonds in June, citing comments run by the state-backed Financial News. The commentary piece also noted that expectations re: the Chinese FX market remain stable, while cross-border capital flows are "basically balanced," suggesting that "although volatilities in the yuan have picked up in the short term, solid fundamentals should offer support." The piece then pointed to the attractiveness of CNY assets, while suggesting that the late-stage nature of the Fed's tightening cycle will provide less support to the USD. Finally, the piece also stressed the ability of policymakers re: calming herd effects.