The Chinese government will begin auctions this week of a planned issue of RMB 1 trillion ($141 billion) of special treasury bonds to help finance recovery from the coronavirus pandemic, reported the South China Morning Post
Sales will be completed by the end of July, who attended a meeting held by China’s Ministry of Finance, which will issue the bonds.
China announced plans in May to sell RMB 1 trillion of special treasury bonds to help fund economic stimulus in the wake of the pandemic. Its plans are being closely monitored by market participants, as when and how the bonds are sold will affect market liquidity.
Reuters sources said that 70% of the special treasury bonds will have a 10-year term, 20% will have a maturity of five years and the remainder will be seven-year bonds.