July 5, 2018 / 5:37 AM / 3 months ago

Offshore holdings of China treasury bonds hit new peak in June

SHANGHAI, July 5 (Reuters) - Offshore investors boosted their holdings of Chinese treasury bonds to an all-time high in June, data from China’s primary bond clearing house showed.

Offshore holdings of Chinese treasury bonds grew by 79.4 billion yuan in June to 915.3 billion yuan ($137.81 billion), according to Reuters’ calculations based on data from China Central Depository and Clearing Co.

It was the 16th consecutive month of increases in offshore holdings of Chinese government bonds.

The purchases brought the proportion of outstanding Chinese government bonds held by offshore institutions to 7.3 percent, the highest proportion to date, and up from 6.7 percent a month earlier.

Foreign bondholdings rose in June despite China’s currency suffering its worst month on record. The yuan fell about 3.3 percent in June, prompting the central bank to soothe jittery markets..

The yield on 10-year Chinese treasury bonds was at 3.522 percent on Thursday, Reuters data showed, down 55 basis points from its late-January high.

$1 = 6.6419 Chinese yuan Reporting by Andrew Galbraith; Editing by Sunil Nair

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