The Agricultural Development Bank of China (ADBC) issued three batches of financial bonds on Monday at lower-than-expected yields. The three batches of bonds bear a respective maturity of 1 year, 5 years and 10 years, with yields standing at 2.5513 percent, 3.2867 percent and 3.5645 percent respectively.
Insiders disclosed that the subscription ratios of the three batches of bonds reached 2.86, 3.73 and 3.57 times the volumes offered. Statistics from China Government Securities Depository Trust & Clearing Co. showed that yields on the 1-year, 5-year and 10-year fixed interest rate policy bank bonds traded on the domestic interbank market stood at 2.7084 percent, 3.3959 percent and 3.6589 percent respectively.
Analysts noted that thanks to the cut of interest rates and reserve requirement ratio (RRR) by the central bank, the three batches of bonds were embraced brisk demand from investors. "The central bank's move is a new catalyst for bond market rally in the future," held Xu Hanfei, chief bond analyst with Guotai Junan Securities, adding that investors were advised to wait patiently for other good news in the future. These were the additional issue of the 5th, 19th and 20th batches of bonds offered by the policy bank in 2015.
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