Investors dump Chinese bonds for an 8th consecutive month - the longest slump on record

• Traders shed China's onshore bonds for the eighth consecutive month, marking the longest slump on record, according to Bloomberg.
• Global investors dumped 70.7 billion yuan, or about $9.7 billion, worth of Chinese bonds, per the report.

China saw its onshore bond market lose 70.7 billion yuan, or about $9.7 billion, in September as global investors shed Chinese debt for the eight consecutive month, according to Bloomberg.

That marks the longest slump on record and follows net sales of 35.4 billion yuan in the prior month, data from the China Central & Depository Clearing Co. and Shanghai Clearing House show.

Last month's dumped assets included 35.8 billion yuan of Chinese government bonds, 20.8 billion yuan bank notes, 3.1 billion yuan of certificate of deposits, and 410 million yuan of local government debt.

The sell-off comes as the yuan recently dropped to its weakest mark since 2008. The Federal Reserve's aggressive rate hikes have spiked Treasury yields, making yuan-denominated assets less enticing given the People's Bank of China's accommodative monetary policy.

The share of government notes owned by foreign investors dipped to 9.4% at the end of September from 9.8% in the prior month, per Bloomberg.

Chinese stocks have also been slumping lately. On Friday, shares in Hong Kong hit their lowest level since 2008, capping a week-long slide as investors reacted to President Xi Jinping's consolidation of power at the Communist Party Congress.