HALISTER1: Investors Looking at CNH Government Bond for Yields, Mizuho Says

Investors Looking at CNH Government Bond for Yields, Mizuho Says

(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.
  • 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%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Ken Cheung (Mizuho Financial Group Inc)

To de-activate this alert, click here

UUID: 7947283