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China’s MOF Issues 91-Day, 1-Year and 50-Year Bonds Totaling 210 Billion Yuan

China’s Ministry of Finance sold 60 billion yuan of 91-day bonds at a yield of 1.1330%, 120 billion yuan of 1-year bonds at 1.1600%, and 30 billion yuan of 50-year bonds at 2.2166%. The 91-day bid-to-cover was 2.50x, the 1-year 3.37x, and the 50-year 9.30x. The 1-year yield came in below the 1.2000% expected.

Original source

AI take

The standout here is the 50-year tranche's bid-to-cover of 9.30x, a striking level of demand for the longest-dated paper on the curve, while the 1-year clearing below expectations points to solid appetite at the front end too. The pattern suggests duration is being absorbed without much yield concession, which matters for anyone tracking how sovereign issuance competes with or anchors other domestic assets. Whether that long-end bid holds at future auctions, and how the 1-year undershoot feeds through the curve, is the open question.

Generated by AI for reference only.

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