The Export-Import Bank of China issued three batches of financial bonds on Friday, which drew brisk demands from investors.
The three batches of bonds bear a respective maturity of 3 years, 5 years and 10 years, with auction yields reaching 2.9618 percent, 3.1866 percent and 3.4666 percent respectively. Statistics from China Government Securities Depository Trust & Clearing Co. showed that yields on the 3-year, 5-year and 10-year fixed interest rate policy bank bonds traded on the domestic interbank market stood at 3.0005 percent, 3.2494 percent and 3.4965 percent respectively.
Market players disclosed that the subscription ratios reached 3.22, 2.62 and 2.16 times the volume offered respectively.
"We believe that the yearend allocation demand from institutions or some loosening policies such as requirement reserve ratio (RRR) cut are likely to prompt bond yields to post further decline in the near future," said Xu Hanfei, chief bond analyst with Guotai Junan Securities.
These are the additional issue of the 14th, 16th and 17th batches of financial bonds offered by the policy bank in 2015 and the fresh issue of the 7th batch. The raised funds will be used as credit loans of the bank.
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