China’s First Special Bond Issuance Likely to See Solid Demand

(Bloomberg) — China’s first issuance of this year’s special sovereign bonds on Friday is expected to see solid demand, according to strategists and gauges of sentiment in the bond market.

Thirty-year yields have edged lower since the Finance Ministry released its plan Monday to sell 1 trillion yuan ($139 billion) of ultra-long debt over a time span of about six months, beginning with a 40 billion yuan auction of that maturity. And interest-rate swaps, an indicator of expectations for short-term borrowing costs, briefly touched a four-year low onshore.