China Development Bank Issues 14B Yuan 1-Year Bond at 1.3061%

The tail versus expectations suggests demand at that yield was slightly softer than the market anticipated, even as a 3.31 times bid-to-cover shows the paper was comfortably absorbed. For policy-bank debt, this is a marginal signal rather than a shift in sentiment. Whether subsequent policy-bank and government bond auctions show similar small tails is the open question worth watching, since it speaks to how much yield investors are demanding at the short end.