Foreign institutions raise China government bond holdings for fifth straight month

The fifth straight month of foreign accumulation, and the largest monthly add since May, points to a relative-value story rather than a broad risk-on turn: Chinese government debt is drawing support precisely as major developed bond markets sell off and the yuan holds firm. That framing matters for global fixed-income allocators weighing duration exposure across markets, and for the yuan itself, since steady official inflows can reinforce the currency stability that is attracting them. The open question is whether this remains a rotation trade driven by weakness elsewhere or becomes a more durable allocation shift — and whether the pace holds once developed-market selloffs stabilise.