Global Investors Continue to Dump Yuan Bonds as Treasurys, Dollar Rise

Capital outflows from the Chinese interbank bond market continued for the third consecutive month in April, as the vanishing yield premium over U.S. Treasurys and a weakening yuan drew foreign investors away from yuan-denominated assets.

Overseas institutional investors held 3.77 trillion yuan ($558 billion) of Chinese interbank bonds at the end of April, a reduction of 108.5 billion yuan from a month earlier, according to the latest data from China Central Depository and Clearing Co. Ltd. and the Shanghai Clearing House.