The Export-Import Bank of China issued three batches of financial bonds on Wednesday, which drew strong demands from investors. The three batches of bonds bear a maturity of 3 year, 5 years and 10 years, with auction yields reaching 3.8433 percent, 3.9384 percent and 4.1644 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 3.8706 percent, 3.9885 percent and 4.1711 percent respectively.
Market players disclosed that the subscription ratios reached 5.58, 3.46 and 3.31 times the volume offered respectively. "Thanks to the relatively loose liquidity condition, spot bond market extends a bull run.
However, with the increasing supply of new interest rate-linked bonds, it is unlikely to see a continuous drop of bond yields," said analysts. These are the additional issue of the 6th, 8th, and 9th batches of bonds offered by the bank in 2015. The raised funds will be used as credit loans of the bank.
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