Global Funds End Two-Year Buying Spree in China Government Debt
- Holdings drop to 2.04 trillion yuan in March: ChinaBond data
- Debt appeal gets eroded as yield gap with Treasuries narrow
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Global funds trimmed holdings of China’s government debt for the first time in two years in March, as their yield premium over Treasuries narrowed and authorities announced plans for more debt sales.
Foreign investors held 2.04 trillion yuan ($312 billion) of Chinese government bonds as of the end of last month, data from ChinaBond show. That’s 16.5 billion yuan lower than the record amount held in February, according to calculations by Bloomberg. The last time overseas institutions cut holdings was February 2019.