The Export-Import Bank of China issued three batches of financial bonds on Thursday at the yields lower than expectations.
The three batches of bonds bear a respective maturity of 3 years, 5 years and 10 years, with auction yields reaching 2.5939 percent, 2.8316 percent and 3.0790 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 2.6853 percent, 2.8972 percent and 3.1477 percent respectively.
Market players disclosed that the subscription ratios reached 2.58, 2.27 and 2.41 times the volume offered respectively. Analysts noted that bond market was expected to extend a bull run in the short term boosted by a large amount of reverse repo offering and institutions' strong allocation demand at the beginning of 2016. These are the additional issue of the 14th, 16th and 17th batches of financial bonds offered by the policy bank in 2015. The raised funds will be used as credit loans of the bank.
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