Investors seeking to cash in on an expected rise in the renminbi have been snapping up China’s bond issues in Hong Kong, driving down yields as a consequence, Bloomberg reported. Yields on offshore bonds maturing in October 2014 fell 22 basis points to 2.91%, even as the yield on onshore debt rose by 44 basis points. Investors are widely seen as banking on an appreciation of the renminbi, which has risen just under 3% since it was effectively depegged from the US dollar in June. China’s central bank reported that the value of international trade settled in renminbi increased by 160% from the three months to June to the third quarter, while the Hong Kong Monetary Authority reported that renminbi-denominated deposits in the city’s banks doubled in the six months to September 30.
Categories