Yuan Falling on Wen Cue Tempers Baosteel Dim Sum: China Credit

The yuan fell to one-month low this week after China’s Premier Wen Jiabao said that there would be more swings in the currency, cooling appetite for Dim Sum bonds.

Offshore forwards indicate traders are paring bets on appreciation as official data showed the central bank intervened less to curb gains. Yuan-denominated bond yields in Hong Kong are rising as Baosteel Group Corp. prepares to sell the first debt by a mainland Chinese company in the market. The average yield on Dim Sum bonds rose 32 basis points to 5.67 percent in November, Bank of China Ltd. data show.