Offshore US Dollar Debt Market 2Q2019 Review: Record issuance in the primary market but receding yields in the secondary market

Since the second quarter of 2019, the Fed’s policy stance has turned dovish which pushes down yields on the US dollar denominated debts including offshore debt issued by onshore Chinese entities. The yield spread between China and the US government bonds continued to widen against the largely steady exchange rate of RMB to USD which boded well for the offshore US dollar debts.