Domestic And Foreign Funds To Reverse The Yield Of RMB Bonds To Achieve Reverse

Britain's retreat to Europe has boosted market demand for safe haven assets.

The attractiveness of treasury bonds has been rising. The 10 - year US bond yield has wiped out all the gains this year.

Yields on China's ten year treasury bonds also declined.

Offshore renminbi bonds were "rob" by investors.

Yesterday, China's first batch of RMB bonds issued by the Ministry of finance was bid for the first time this year. The purchase amount reached 44 billion 400 million yuan, a record high after 2012, and nearly 2.17 times over subscribed.

Market pairs

There are four main reasons for the enthusiastic response: offshore liquidity in the offshore market is ample, for example, the tomorrow next interest rate has been "negative interest rate" for many consecutive days; offshore bond interest rates are higher than those issued by other countries, such as the total interest rate of the German bonds in the same year is about 350 points; the expected depreciation rate of the renminbi is not large, the level of 6.67 yuan is expected at the end of the year, and the supply of offshore bonds is relatively low. In June and August, 7 billion and 5 billion yuan bonds were redeemed respectively.

Bloomberg conducted a survey of 22 investors and analysts. 14 respondents said they were most interested in buying government bonds and policy bank bonds in the next quarter, up from the previous survey in March.

3 months ago, only 3 of the 19 investors and analysts surveyed by Bloomberg said they were most interested in government bonds and policy bank bonds.

More than a dozen respondents said the default would be the Chinese debt market facing the next quarter.

Bond spreads will widen.

Liu Dongliang, senior analyst at the head office of asset management of China Merchants Bank, told Bloomberg: "there is still a lot of money in the market and investors need safer assets.

After a number of high Rating firm defaults this year, investors found only Treasuries to ensure safety.

Credit risk may continue to deteriorate and the economy has not yet stabilized. "

From yesterday's renminbi in Hongkong Market

We can see the market's enthusiasm for RMB bonds.

Yesterday, China's first batch of RMB bonds issued by the Ministry of finance was tender this year, and the purchase amount reached 44 billion 400 million yuan, a record high after 2012.

The amount of 14 billion yuan is equivalent to over 2.17 times of oversubscribed.

In the face of other government bonds being robbed to negative interest rates, offshore bond yields are quite attractive, coupled with ample market liquidity and a shortage of dim sum debt. This is the main reason for the popularity of today's treasury bonds.

China's Ministry of Finance issued treasury bonds to institutional investors in Hongkong yesterday through bidding, and all the interest rates for offshore bonds all over the years are lower than the market forecast level.

The current term of offshore bonds includes 3 years, 5 years, 7 years, 10 years and 20 years. The winning rates are 0.29%, 0.325%, 0.33%, 0.35% and 0.398% respectively, and are below the secondary market interest rate and market forecast level.