China Development Bank issued five batches of bonds on Tuesday with yields much higher than expected. The five batches of bonds bear maturities of 1 year, 3 years, 5 years, 7 years and 10 years, with auction yields reaching 3.9700 percent, 4.1800 percent, 4.2764 percent, 4.3858 percent and 4.2998 percent respectively.
Statistics from China Government Securities Depository Trust & Clearing Co. showed that yields on the 1-year, 3-year, 5-year, 7-year and 10-year fixed-rate bonds offered by the bank traded on the domestic interbank market stood at 3.8885 percent, 4.1558 percent, 4.2016 percent, 4.2161 percent and 4.1606 percent respectively.
Market players disclosed that the subscription ratios reached 3.79, 2.79, 3.14, 4.01 and 3.45 times the volume offered respectively. "Obviously, the auction yields beat market expectation," said market players, adding that bond market correction was likely to extend for a period of time.
These are the additional issue of the 3rd to 5th batches of bonds offered by the bank in 2015 and the fresh issue of the 6th and 7th batches. The raised funds will be used to support shantytown restoration projects and urban infrastructure construction.