CDB sells 12B yuan 1-yr bonds at 1.38%

The CDB's 1-year bond pricing at 1.38% aligns with market expectations, but the modest bid-to-cover ratio of 1.88 suggests tepid demand relative to recent auctions, possibly reflecting caution in the short-end as policy rate signals remain in focus. The spread between the 1-year and 10-year yields, at roughly 36 basis points, underscores a steep curve that could indicate market pricing for future easing or term premium adjustments. For institutional players, the marginal ratio near 1.05 hints at thin bidding tail, signaling limited aggressive buying. What matters next is whether subsequent auctions sustain this demand profile, as it would reveal the depth of appetite for policy-bank paper amid liquidity conditions.