Markets· Bond

China Bond Daily News 09:50 BJT

minutes 2019/12/26 04:40:52
Bond, Markets

Dec 26, 2019 (China Knowledge) - Today, 189 new bonds will be listed for trading, 22 new bonds put up for tender.

The yield on the first transaction of 10-year China Development Bank bond up 0.05bp to 3.56%.

1-day pledge-style T-bond on the Shanghai Stock Exchange (SSE) rose 20bp to open at 2.78%, and 7-day pledge-style T-bond on the SSE rose 1bp to open at 3.10%.

PBoC announced that fiscal spending will increase at the end of the year, resulting in a relatively high level of liquidity in the banking system. There will be no reverse repo carried out, and RMB 30 bln of reverse repo will be due today.

The opening price of 1-day inter-bank pledge-style repo (DR001) was 2.50%, and the weighted average price of the previous day was reported at 0.9289%. The opening price of the 7-day inter-bank pledge-style repo (DR007) was 2.60%, and the weighted average price of previous day was 2.4346%.

T-bond futures opened higher, with the 10-year contract up 0.05% and 5-year contract up 0.04%.

The weighted average interest rate of overnight pledge-style repo rose 30.83bp to 1.2372% at the beginning of trading session.

The schedule for issuance of the first batch of local government bonds in 2020 has been set after the Ministry of Finance issued a partial new special debt ceiling of RMB 1 trln in advance at the end of Nov. As of December 25, Shanxi Province, Sichuan Province, Zhejiang Province, Hunan Province, and Qingdao City have disclosed information on local bond issuance in 2020, with a total of RMB 170.63 bln of new special bonds to be issued in Jan 2020.

177 credit bonds defaulted in 2019, totalling RMB 141.908 bln. These significantly exceeded 2018 figures, which saw 125 credit bonds defaulted with total scale of RMB 120.961 bln.

According to the chairman of CSRC, China's bond market is now worth more than RMB 95 trln, the second largest in the world, and has become an important channel to increase the proportion of direct financing and optimize the allocation of financial assets.

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