Investors turning to Chinese bonds for better yields

Global investors are helping drive China's biggest bond rally since 2008, drawn by the widest yield advantage over US Treasury securities among similarly rated nations as the authorities grant increased access to domestic markets.

Foreign holdings of local notes surged 59 percent this year, pushing the Bank of America Merrill Lynch China Broad Market index of the nation's publicly traded sovereign and corporate debt to climb 8 percent, the most in six years.

The yield on two-year government securities is 312 basis points higher than that of Treasuries, the biggest gap among nations graded Aa3 by Moody's Investors Service.