SHANGHAI, Dec 16 Reuters Foreign investors continued to offload holdings in China39;s onshore bonds for a 10th straight month in November, although some market watchers expect the 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 endNovember, down from 3.38 trillion yuan a month earlier, the central bank39;s Shanghai head office said on Thursday.

Overseas institutional investors dumped a net 740 billion yuan worth of Chinese bonds during the 10month streak of outflows, the longest on record.

A breakdown of the figures showed foreigners sold a net 40.3 billion yuan of interbank yuan bonds in November, up from 34 billion yuan in October, according to data from China Central Depository Clearing Co CCDC, the main depository institution for China39;s interbank bond market.

A weaker yuan, a stronger dollar and monetary policy divergence between China and other major economies, particularly the United States, which tightened aggressively 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…