SHANGHAI, May 17 (Reuters) - Foreign holdings of China's onshore yuan bonds increased for the eighth consecutive month in April, official data showed on Friday.

Foreign institutions held 4.05 trillion yuan ($560 billion)in bonds traded on China's interbank market as of the end of April, the central bank's Shanghai head office said, up from 4 trillion yuan a month earlier.

($1 = 7.2267 Chinese yuan renminbi) (Reporting by Shanghai Newsroom Editing by Mark Potter)