China Development Bank (CDB) issued five batches of bonds on Tuesday, with short-term varieties more popular among investors.
The five batches of bonds bear a maturity of 1 year, 3 years, 5 years, 7 years and 10 years, with the auction yields standing at 2.5413 percent, 3.2349 percent, 3.5420 percent, 3.8873 percent and 3.8810 percent respectively.
Statistics from China Government Securities Depository Trust & Clearing Co. showed that yields on the 1-year, 3-year, 5-year, 7-year and 10-year fixed interest rate policy bank bonds traded on the domestic interbank market stood at 2.6742 percent, 3.3307 percent, 3.6096 percent, 3.9699 percent and 3.9598 percent respectively.
Market players disclosed that the subscription ratios reached 6.56, 5.43, 2.96, 3.89 and 4.09 times the volumes offered. It was abnormal that the yield on 7-year variety was even higher than that on the 10-year one.
However, compared with their counterparts offered previously, the yield spread between the two became narrower.
Analysts with Weifang Rural Commercial Bank noted that as institutions felt uncertain about bond market outlook, they took a cautious attitude towards bond allocation and favored short-term varieties due to their good liquidity.
These were the additional issue of the 10th, 12th, 13th, 15th and 16th batches of bonds offered by the bank in 2015.
The raised proceeds would be used to support shantytown restoration projects and urban infrastructure construction.
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