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Market watchers expect FTSE Russell to add Chinese government bonds in its World Government Bond Index (WGBI) during an annual review this month.

That could draw an additional $140 billion into Chinese bonds, according to investment banking giant Goldman Sachs. As such, the inclusion of Chinese bonds in WGBI may yield a yuan (CNY) rally. USD/CNY is trading at 6.7958 at press time, representing a 0.24% gain on the day, having hit a low of 6.7632 on Sept. 17. 

Yuan has rallied by 5.3% in the past four months.