TREE NEWS update: Shandong province issued special local government bonds across seven maturities, including 16.387 billion yuan of 30-year notes at a 2.18% coupon with a marginal bid-to-cover ratio of 91.16 times, against an expected 2.18 times. The 15-year tranche totaled 8.999 billion yuan at 1.94%, and the two 10-year tranches raised 1.48 billion and 283 million yuan at 1.64% and 1.67% respectively.
Shandong issues multi-tranche special local bonds; 30-year 16.387B yuan at 2.18%
The striking figure here is the marginal bid-to-cover ratio of 91.16 times on the 30-year tranche against an expected 2.18 times — a gap so wide it points to either an unusually thin marginal allotment or intense competition for long-dated provincial paper at that coupon. Either way, the demand signal across seven maturities, from 30-year down to 10-year at 1.64-1.67%, suggests provincial issuers are still able to clear sizeable long-tenor supply at low yields. Whether this level of oversubscription holds in subsequent provincial issuance is the open question, since it speaks to how much duration appetite local buyers still carry.
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