China Fails to Complete 91-Day Treasury Bill Sale, Traders Say
China Fails Complete Bill Sale for Second Time One Month
Nelson Ching/Bloomberg
China’s government failed to draw enough demand at a bill sale for the second time in a month as seasonal demand for funds and higher reserve-requirement ratios left banks with less cash.
China’s government failed to draw enough demand at a bill sale for the second time in a month as seasonal demand for funds and higher reserve-requirement ratios left banks with less cash. Photographer: Nelson Ching/Bloomberg
China’s finance ministry failed to draw enough demand at a bill sale for the second time in a month, reflecting a cash squeeze sparked by increases in banks’ reserve-requirement ratios and seasonal demand for funds.
The ministry sold 16.76 billion yuan ($2.53 billion) of 91- day securities, falling short of the planned 20 billion yuan target, according to traders at the lead underwriters of government debt, who asked not to be identified. The average winning yield was 3.6769 percent, according to the traders. That compared with 3.22 percent on the debt of similar maturity in the secondary market yesterday.
The finance ministry in February published a list of 48 lead underwriters required to bid at its debt sales, including Industrial & Commercial Bank of China Ltd., Agricultural Bank of China Ltd., Bank of China Ltd., China Construction Bank Corp., China Citic Bank Corp, Postal Savings Bank of China, Guotai Junan Securities Co, BOC International (China) Ltd.
To contact the editor responsible for this story: Bloomberg News at swong139@bloomberg.net
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