China sells offshore yuan bonds in Hong Kong at record-low yields

By Reuters News

HONG KONG, Oct 23 (Reuters) - China's finance ministry sold 15.5 billion yuan ($2.32 billion) of offshore yuan-denominated government bonds in Hong Kong on Friday at the lowest yields across the tenors since data became available, amid robust demand.

Here are some details:

  • The bonds were sold at yields of 1.24% for 2-year notes, 1.28% for 3-year notes, 1.38% for five-year notes and 1.67% for 10-year notes, according to Ministry of Finance

  • The yields were record lows for comparable offshore yuan-denominated Chinese government bond auctions in Hong Kong, according to Reuters calculations based on Central Moneymarkets Unit data dating back to 2012

  • The ministry said the offering, which was open to institutional investors, was 3.43 times covered

  • China's bonds have been rallying in recent months as weak domestic economic growth and lacklustre equity-market performance fuelled demand, bucking a broader global bond selloff

  • The latest yields on China's offshore sovereign yield curve were 1.3248% for the two-year tenor, 1.3598% for the three-year tenor, 1.4757% for the five-year tenor and 1.779% for the 10-year tenor



($1 = 6.6702 Chinese yuan renminbi)

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