The Export-Import Bank of China or China Exim Bank auctioned its 1-year and 10-year bonds amid feverish demands Thursday.
The products were priced to yield 2.7180 percent and 3.7952 percent respectively after being 3.77 times and 4.80 times subscribed at auction.
Analysts attributed the pleasant auction result to the presently loose liquidity flows after the Chinese central bank conducted short-term liquidity operations (SLO) and reverse repo sales on Tuesday.
Currently, China's financial market liquidity flows are likely to remain fluid or turn looser in the following months, meaning limited downturn risks for bonds, a relatively low risk investment tool for investors.
According to China Exim Bank, proceeds from the 1-year and 10-year bond issuances, which are additional issuances for its eighth and 11th batches of bonds sold this year, will be used to finance its credit loans.
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