Investors Looking at CNH Government Bond for Yields, Mizuho Says
Source: BFW (Bloomberg First Word)
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Ken Cheung (Mizuho Financial Group Inc)
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(Bloomberg) -- Chinese government bonds in offshore markets have “become a target” as investors ignore weakening economic data in the hunt for yields, Mizuho Bank Asian FX strategist Ken Cheung writes in a note today.
Alert: HALISTER1- Yield of CNH China govt bonds is relatively higher than what other major treasury products offer
- Secondly, yuan is expected to hold ahead of the G-20 Summit on Sept 4-5, with investors expecting PBOC to defend RMB at 6.70 per dollar
- Thirdly, yuan’s inclusion in SDR basket and opening of onshore market would boost demand for Chinese assets. Inflows will also support CNH govt bonds
- NOTE: Yield of 10-yr CNH government bond closed at 3.201% yesterday, lowest since March 2013
- 10-yr CNY govt note little changed today at 2.65%
Source: BFW (Bloomberg First Word)
People
Ken Cheung (Mizuho Financial Group Inc)
To de-activate this alert, click here
UUID: 7947283