First investment agency bonds go on sale

The first batch of special treasury bonds used to raise money for China's new state investment agency went on sale Wednesday, AP reported, citing state media. It was said that US$79 billion in bonds has gone on the market, out of a total US$199 billion, with an annual interest rate of 4.3%, which matches the standard rate for long-term debt. The state investment agency, which reports directly to China's cabinet, needs to raise money so it can buy foreign exchange from the central bank. The amount could range from US$200 billion to 400 billion. The agency is tasked with investing the funds in more lucrative products than the low-yield US Treasury bills in which the bulk of China's forex is invested.