Zhejiang issues 3-year special local bond at 1.24% yield

The 4.42x bid-to-cover on the three-year tranche signals demand that comfortably absorbed supply at the expected yield, a sign of how aggressively short-dated provincial paper is being chased. The steeper pricing on the 15- and 20-year toll-road and other special bonds shows the curve remains steep even within a single issuer's same-day slate, so duration rather than credit is doing the work. Whether that short-end compression holds as more provinces bring supply is the open question.