Economics
China's About to Sell Dollar Bonds in Middle of a Trade War
- Ministry of Finance prepares $3 billion issuance on Thursday
- Investors seen pressing for bigger premiums than last year
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A year after its first sovereign sale of dollar bonds in well over a decade, China’s about to tap that well again. This time around, the reception isn’t likely to be quite as enthusiastic.
The $3 billion issuance of five-year, 10-year and 30-year securities, due Thursday, follows a jump in yields on benchmark Treasuries, and a slump in the yuan against the dollar thanks in part to China’s deepening trade-war with the U.S. While the Ministry of Finance hasn’t identified a purpose for the sale, underwriters had long expected a follow-up to last year’s $2 billion deal to help build out a benchmark yield curve for Chinese offshore borrowers.