The Export-Import Bank of China issued two batches of financial bonds on Thursday, which drew brisk demands from investors. The two batches of bonds bear a maturity of 1 year and 10 years, with auction yields reaching 2.6897 percent and 3.8838 percent respectively. Statistics from China Government Securities Depository Trust & Clearing Co. showed that yields on the 1-year and 10-year fixed interest rate policy bank bonds traded on the domestic interbank market stood at 2.8165 percent and 3.9414 percent respectively.
Market players disclosed that the subscription ratios reached 3.81 and 4.04 times the volume offered respectively. Analysts noted that the central bank's offering of reverse repos and medium-term lending facility (MLF) helped ease the tight liquidity condition and bolstered bonds to some extent.
The People's Bank of China (PBOC), the central bank, pumped 120 billion yuan (18 billion U.S. dollars) into the money market via reverse repo sales on Tuesday. Moreover, it injected 110 billion yuan (17 billion U.S. dollars) into the market on Wednesday through medium-term lending facility (MLF). These are the additional issue of the 8th and 11th batches of financial bonds offered by the policy bank in 2015. The raised funds will be used as credit loans of the bank.
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