Foreigners Snapping Up China’s Bank Debt May Boost Yuan Defense
This article is for subscribers only.
China’s bond selloff is creating pockets of opportunity for foreign investors, who can swap dollars for more attractive yuan-denominated short-term bank debt — and inadvertently bolster Beijing’s support of its currency.
The yield on one-year AAA-rated negotiable certificates of deposits, short-term debt issued by banks, rose to 2.03% this week, the highest since June, according to data compiled by Bloomberg.