China’s finance ministry will begin selling this year’s 1.3 trillion yuan (HK$1.49 tillion) in ultra-long special government bonds on Friday, as investors gauge demand and the outlook for long-term yields amid heightened external uncertainty.
The auctions will start at 0235 GMT and comprise 85 billion yuan of 30-year bonds and 34 billion yuan of 20-year bonds.
The ministry has retained this year’s ultra-long special treasury issuance to 20-, 30- and 50-year maturities, unchanged from last year.
The backdrop of the Iran war and its global economic effects, as well as domestic challenges including a persistent property downturn, will test investor appetite for the debt.
The sales are being staggered from April to October to limit liquidity shocks, with the first tranche of 30-year bonds set to start trading on April 29.
Beijing has said it will issue such bonds for several consecutive years from 2024 to underpin crucial national strategies and strengthen security capacity in key areas.
Reuters