TREE NEWS update: Shanxi province priced eight tranches of local government bonds, including a 7-year general bond of 3.309 billion yuan at a 1.5500% yield and a 7-year special bond of 3.30861 billion yuan at 1.5500%. A 20-year other special bond of 2.3758 billion yuan drew a marginal bid-to-cover of 21.79x against an expected 2.19x, while a 30-year tranche of 825 million yuan priced at 2.2600%.
Shanxi Prices Eight Tranches of Local Government Bonds, Led by 7-Year General Bond at 1.55%
AI take
The striking detail is the 20-year other special bond's marginal bid-to-cover far exceeding expectations, signalling demand concentrated at the long end even as 7-year general and special tranches cleared at identical yields. That flattening between general and special obligations suggests investors are not demanding a spread for project-linked risk at this tenor. Whether that long-end bid holds as Shanxi brings further supply is the open question.
Generated by AI for reference only.
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