China is preparing to launch its largest ever dollar bond, in a move that could double last year’s issuance and help slake global investor demand for higher-yielding dollar debt, reported the Financial Times.
The government bond offering could raise as much as $6 billion, said FT sources. The issuance, which would mark the biggest dollar offering on record by China’s Ministry of Finance, according to Dealogic data, could hit the market as early as Tuesday.
Yields on China’s 10-year US dollar sovereign bonds were just shy of 3.2% on Friday, compared with yields of less than 1.8% for US Treasuries of the same maturity.
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