Beijing issues $4.6bn in T-bonds

The Ministry of Finance announced that it would make US$4.59 billion in new 10-year treasury bonds available available for sale to the public, state media reported. The bonds, which are on sale from November 5 to November 7, will pay interest twice a year with an anual yield of 4.49%. The sale is the fourth tranche of a total US$200 billion sale of treasury bonds announced by the ministry in September. The sale is intended to reduce liquidity and ease economic overheating. Wang Guogang, a financial expert at the Chinese Academy of Social Sciences, said that such a move should in theory have the same effect as a 0.5% raise in the bank reserve requirement.