SHANGHAI, Dec 15 Reuters Foreign investors continued to offload their holdings of China39;s onshore bonds for a 10th straight month in November, although some market watchers expect the heavy outflow pressure to ease soon.

Foreign holdings of yuandenominated bonds traded on China39;s interbank market stood at 3.33 trillion yuan 477.3 billion at the end of October, down from 3.38 trillion yuan a month earlier, the central bank39;s Shanghai head office said on Thursday.

The 10th consecutive month of selling makes it the longest streak of outflows on record.

A weaker yuan, a stronger dollar and monetary policy divergence between China and other major economies, particularly the United States, in light of global tightening to tame inflation were among the key factors discouraging overseas investors from buying Chinese bonds this year, traders and analysts said.

Some investors expect such outflow pressure from China to fade as the U.S. monetary tightening cycle may come to an end soon.

Some market participants believe an expected recession in the world39;s largest economy will force the Federal Reserve to loosen monetary policy next year, even as the U.S. central bank projects it will take rates higher than it previously anticipated and keep them there longer to bring down inflation.

With further narrowing in U.S.China government bond yield differential recently, especially at the longend, we think the bond outflow pressure may have eased further in November, J.P.Morgan…