Date
18 October 2017

Bond auction result reflects mixed conditions, WSJ says

A sixth auction of sovereign offshore yuan-denominated bonds in five years yielded mixed results Thursday on expectations of a currency appreciation and tighter monetary conditions in China, the Wall Street Journal reported. Most of the interest in the 7 billion yuan (US$1.15 billion) sale was in three-year bonds which attracted orders worth 4.1 times the 5 billion yuan on offer while the 2 billion yuan tranche of five-year sovereign bonds was 2.7 times subscribed. The overall robust interest in the bonds reflects significant liquidity in the offshore yuan market while renewed yuan appreciation expectation lifted investor sentiment toward dim sum bonds, Becky Liu, senior rates strategist at Standard Chartered Plc., was quoted as saying.

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