Global Funds Return for China Sovereign Bonds, Snub Other Debt
- Inflows to sovereign notes return after five months of selling
- Foreign investors sold 22.4 billion yuan of policy bank notes
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China’s sovereign bonds received foreign inflows last month for the first time since January as falling Treasury yields increased their attractiveness. Other onshore debt remained unpopular among global investors.
Overseas funds bought 3.3 billion yuan ($487 million) of Chinese government bonds last month, according to data from China Central Depository & Clearing Co. That’s after offloading 199.3 billion yuan of the notes in the five months through June, which is about 8% of their holdings before the selloff started.