The bonds sale was carried out in the wake of a massive blow sustained by the US stock market earlier this week, and effectively demonstrates China’s sway in the international bond market.
Beijing sold $3 billion of sovereign dollar bonds, making it the third such sale in the last 14 years.
As Chinese Ministry of Finance revealed, Beijing sold $1.5 billion worth of 5-year bonds at 3.25 percent, $1 billion worth of 10-year bonds at 3.5 percent and $500 million worth of 30-year bonds at 4 percent.
« The bond issuance is more like a vote of confidence in China’s creditworthiness, » Ziyun Wang, partner and senior portfolio manager at DeepBlue Global Investment Ltd, said.
As Reuters points out, the Chinese bonds were priced at 30,45 and 70 basis points over US Treasuries for the five-year, 10-year and 30-year bonds, respectively.
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