Money

China 7-year bond sale yield at bottom of forcast

(Agencies)
Updated: 2010-04-21 15:34
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SHANGHAI - China's Ministry of Finance auctioned 28 billion yuan of seven-year bonds in the interbank market on Wednesday at a yield of 3.01 percent, traders said, at the bottom of the forecast range.

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Market forecasts had centred around 3.04 percent and ranged from 3.00 to 3.07 percent.

The auction yield came in well below Tuesday's indicative secondary market bid yield of 3.1518 percent for seven-year government bonds , according to Reuters Reference Rates.

Traders had expected the sale to attract strong demand as the market pushed back the timing of an interest rate hike after the latest tightening steps for the property sector, while insurers are seen favouring the bonds given its relatively longer tenor. 
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