http://www.zerohedge.com/news/2016-04-17/hungary-issues-sovereign-bonds-denominated-yuan-another-nail-us-reserve-currency-sta
Hungary Issues Sovereign Bonds Denominated In Yuan: Another Nail In US Reserve Currency Status?
Submitted by Tyler Durden on 04/17/2016 - 10:35
Hungary priced the three-year bond at a yield of 6.25%, raising 1 billion yuan ($154 million), a small size for a sovereign deal. Bankers not involved in the transaction estimate that if Hungary issued debt in U.S. dollars and swapped the proceeds into yuan, it would have paid almost 1% less in annual interest costs. The dim-sum market isn’t an appealing market right now. Issuance of offshore yuan bonds has been falling consistently since Beijing’s decision to devalue its currency by 2% in August last year—the prospect of another yuan devaluation has sapped much of the appeal of such bonds for offshore investors.