The People’s Bank of China announce another step to open China’s financial markets to wider global access. A statement from the People’s Bank of China Friday:China will allow foreign institutional investors to buy bonds traded on its smaller exchange market

Qualified foreign institutional investors ranging from central banks and sovereign funds to commercial banks and pension funds will be allowed to invest in bonds on the exchange marketcan trade bond and invest in derivatives, among other bond-based instruments permitted by the PBOC and China’s securities regulatorfrom June 30via Bloomberg (gated)

Some background reading for the weekend in this report.
Rates may we have peaked for now.
The idea is not fresh, as economic data has come off the boil in the past few weeks yields have fallen, down sharply from the cycle highs reached in the month of May (info via Greg):

2 year 2.484%, +0.2 basis points. The cycle high yield reached 2.857%. The yield has moved down -37 basis points.

5 year 2.724%, +1.2 basis points. The cycle high yield reached 3.107%. The yield has moved down -38 basis points

10 year 2.743%, -0.8 basis points. The cycle high yield reached 3.203%. The yield has moved down -46 basis points..

30 year 2.972%, -1.2 basis points. The cycle high yield reached 3.309%. The yield has moved down -34 basis points

but the report has some comments from various analysts, come noting likely policy divergence between the Fed and the BoE.

Bank of England’s Bailey testifying

Justin had the main point of the defaulted debt juggling posted on Friday:

Evergrande is said to look to repay offshore creditors the principal and interest of the debt by turning them into new bonds.

Reuters have posted more detail, makes for interesting reading on how Evergrande tries to sort out $22.7bn of offshore debt deemed to be in default after missing payment obligations late last year. 

As part of the proposal, Evergrande is looking to repay offshore creditors the principal and interest by turning them into new bonds, which will then be repaid in instalments over a period of seven to 10 years, said one of the sources.

Good luck to the creditors. 

Info comes via Reuters:
Russia’s National Settlement Depository (NSD) on Friday successfully paid coupons in foreign currency on two Eurobonds, an NSD representative told Reuters, a move that could mean Russia may have again averted a default.
There is more USD debt payments due in June. Russia continues to scramble to cover.