China's Ministry of Finance (MOF) issued on Monday 30 billion yuan worth of 5-year T-bonds at annualized yield of 3.14 percent, which was well within expectations.
Statistics from China Government Securities Depository Trust & Clearing Co. showed that yield on the 5-year fixed interest rate T-bonds traded on the domestic interbank market stood at 3.1459 percent.
Market players disclosed that the subscription reached 2.29 times the volume offered. "In the past two weeks, rising risk-aversion sentiment has resulted in rapid decline of long-term T-bond yields.
However, the prices will be reevaluated in the near future," said Qu Qing, an analyst with Huachuang Securities. This is the 19th batch of book-entry coupon bearing T-bonds offered by the ministry in 2015, with the value date and circulation date on September 8 and September 14 respectively.
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