China Will Test Markets With Biggest Offshore Bond Sale Since 2016
- First 7.5 billion yuan batch of bonds to be issued Wednesday
- Offering comes as Federal Reserve set to hike interest rate
The Ministry of Finance building in Beijing, China.
Photographer: Yan Cong/BloombergThis article is for subscribers only.
The first batch of a Chinese offshore yuan sovereign bond sale saw the strongest demand in nearly two years, defying a recent stream of outflows at a time when the global debt market is showing deepening levels of stress.
The Ministry of Finance auctioned 7.5 billion yuan ($1.1 billion) of the central government bonds across two, three and five-year maturities on Wednesday, the first of four batches totaling 23 billion yuan planned for this year in Hong Kong, denominated in the offshore currency. That would make it the biggest sale in six years.