China’s Guangdong set to lower lower bound on local-source bond bid rate

SHANGHAI, Jan 21 (Reuters) – South China’s Guangdong province will lower the lower limit of the bid rate range for local government bonds to be issued on Monday, people familiar with the issue said on Friday. of the file, following the drop in the main Chinese key rates. this week.

The province will reduce the minimum premium above the five-day average value of central government bonds of the same maturity to 10 basis points, from a previous low of 15 basis points, the sources said.

Guangdong is expected to issue about 116.6 billion yuan ($18.38 billion) of general purpose and special purpose bonds on Monday, with maturities between seven and 30 years.

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China’s central bank surprised markets on Monday by lowering its short- and medium-term financing rates, just ahead of the release of data showing a darkening outlook for consumption and the real estate sector. Read more

China on Thursday lowered benchmark mortgage rates and, sources said, the People’s Bank of China would later cut interest rates on a key monetary policy tool through which financial institutions can obtain loans later on Friday. temporary central bank liquidity. Read more

($1 = 6.3423 Chinese Yuan)

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Reporting by Fang Wu, Xiangming Hou and Andrew Galbraith; Editing by Simon Cameron-Moore

Our standards: The Thomson Reuters Trust Principles.

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