Global Funds End Two-Year Buying Spree in China Government Debt
Bloomberg 1 hr ago Bloomberg News
(Bloomberg) 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.
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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.
While Chinese bonds have emerged as a haven during the global debt rout this year, the surge in Treasury yields to levels last seen in January 2020 have dimmed their appeal. Inflows may also slow after FTSE Russell said last month an inclusion of the nation’s debt into its global index will take three years, instead