China Accelerates $142 Billion Bond Sale to Boost Economy
- Special bond quota must be allocated “as soon as possible”
- Benchmark China 10-year yield little changed near 3.18%
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China has ordered local governments to speed up the issuance of debt earmarked for infrastructure projects, so that the proceeds can be invested early in 2020 to help shore up the slowing economy.
All localities are required to allocate the recently issued “special bond” quota of 1 trillion yuan ($142 billion) “as soon as possible” to specific projects, the Ministry of Finance said in a statement late Wednesday. There were no details on when the sales will actually begin, or what the total quota for 2020 will be. Analysts disagreed on whether the statement implies issuance will start as soon as December.