China is set to issue its first batch of special sovereign bonds for this year, with strong demand expected from the bond market. The Finance Ministry’s plan to sell 1 trillion yuan ($139 billion) of ultra-long debt over the next six months, starting with a 40 billion yuan auction of thirty-year bonds, has led to a decrease in yields. Interest-rate swaps, which reflect expectations for short-term borrowing costs, have also reached a four-year low.
Investors are showing optimism towards the issuance, with the bond market sentiment indicating positive reception. The upcoming auction is anticipated to attract solid interest, signaling confidence in China’s bond market.