TREE NEWS update: Shenzhen issued special local government bonds across seven tranches on the same day, including 5-year debt of 28 million yuan at 1.4600%, 10-year debt of 4.712 billion yuan at rates of 1.7200%-1.7300%, 15-year debt of 1.4821 billion yuan at 2.0500%, 20-year debt of 6.78267 billion yuan at 2.2000%-2.2100%, and 30-year debt of 504 million yuan at 2.2700%. The 30-year tranche drew a marginal bid-to-cover of 13.50x.
Shenzhen Issues Multi-Tranche Special Local Government Bonds
AI take
The standout is the 30-year tranche's 13.5x marginal bid-to-cover, an exceptionally strong demand signal for the longest tenor despite its small size. The broader curve shows Shenzhen funding across five to 30 years at yields clustered in the 1.46%-2.27% band, with the 10-year tranche the largest by far at 4.712 billion yuan. Whether such heavy long-end oversubscription persists in future local government issuances is the open question, particularly given how modest the 30-year allocation was relative to the demand it attracted.
Generated by AI for reference only.
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