May 27, 2024 05:41 GMT
CGS Cheaper As Issuance Increases To Most In Seven Months
ASIA RATES
China Government Bonds are dealing 1-2bps cheaper across benchmarks after China’s issuance of local government bonds in May reached the most in seven months.
- This surge in bond issuance indicates that authorities are increasing fiscal stimulus to bolster the economy (as per BBG). The tally for the month so far stands at 790 billion yuan ($109 billion), according to data compiled by Bloomberg. May’s figure has been boosted by 391 billion yuan in sales planned for this week, the data show.
- In contrast, South Korean Sovereign Bonds are mostly richer, apart from the 20-year, with yields 1-3bps lower. There has been little in the way of local news out today.
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