BEIJING, Oct. 9 (Xinhua) – Foreign institutional investors bought in net over 800 billion yuan bonds from China's interbank bond market in the first three quarters, according to data released by China Foreign Exchange Trade System Tuesday.
In the third quarter, foreign institutional buyers reported 321.1 billion yuan of net bond purchasing from the interbank bond market, including 110.8 billion yuan of net buying in September, up 59 percent over August this year.
In the first half year, their net bond purchase from interbank bond market in the Chinese mainland was around 500 billion yuan.
Liu Yu, chief fixed-income analyst with Guosheng Securities attributed their investment spree to China's relatively high Treasury bond yields, saying that China’s bond products remained rather attractive to foreign institutions given the over 100 basis points bond yield spread between China and the U.S. and rather limited currency and sovereign risks of G20 countries.
By Tuesday, China's 10-year Treasury bond yield was 3.139 percent while the comparable U.S. government bond yield was 1.515 percent, marking still a relatively high level in view of historical figures.
By far, the over 100 billion yuan of net bond purchasing by foreign buyers in September hinted influences from depreciation of the Chinese currency since August has been subsiding. (Edited by Duan Jing, duanjing@xinhua.org)
A single purchase
