TREE NEWS update: Xinjiang issued 10-year special local government bonds totaling 1.37 billion yuan at a coupon of 1.73%, with a bid-to-cover marginal ratio of 1.46 times against an expected 1.73 times. A 15-year tranche of 3.75 billion yuan priced at 2.09% drew a marginal ratio of 20.00 times, while a 20-year tranche of 1.17 billion yuan priced at 2.25%. A separate 10-year general special bond of 7.68 billion yuan also priced at 1.73%.
Xinjiang Issues 10-Year Special Local Bonds at 1.73%, 15-Year at 2.09%
The striking detail is the split in demand: the 10-year tranche cleared below its own expected bid-to-cover, while the 15-year drew a marginal ratio of 20 times, suggesting buyers are reaching for tenor rather than chasing the front end. Pricing a 10-year at 1.73% alongside a 15-year at 2.09% leaves a thin spread for the extra five years of duration, which is the kind of curve shape that usually signals anchored short-end expectations rather than growth optimism. Whether that long-end appetite holds at these levels is the open question.
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