TREE NEWS update: China’s Ministry of Finance issued a 3-year bond of 120 billion yuan at a 1.2522% coupon, versus an expected 1.2600%, with a bid-to-cover ratio of 3.15 times and a marginal ratio of 4.09 times. It also issued a 20-year bond of 20 billion yuan at 2.0649%, versus an expected 2.0700%, with a bid-to-cover of 10.48 times and a marginal ratio of 1.04 times.
China’s MOF issues 3-year and 20-year bonds, raising 140 billion yuan
AI take
The strong bid-to-cover ratios, especially the 20-year's 10.48 times, signal robust demand for duration even as coupons printed slightly below expectations. That skew reflects a market comfortable with the sovereign's long-end supply, though the 20-year's low marginal ratio hints at thinner pricing tension at the margin. What matters is whether this appetite holds as issuance continues, since persistent strong coverage would keep funding costs contained.
Generated by AI for reference only.
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