SHANGHAI, April 14 (Reuters) – China’s finance ministry will meet government bond underwriters on Thursday, and the agenda is expected to cover this year’s issuance of ultra-long special treasury bonds in addition to routine government bond plans, two sources said.
The ministry did not immediately respond to a request for comment.
“The quarterly routine government bond issuance meeting will be held on Thursday, and I expect special treasury bonds will be mentioned – it’s about time and will spare everyone the daily guessing,” one of the people said. The sources declined to be named because they were not authorised to speak to the media.
Markets have been broadly expecting a smaller allocation of 30-year special treasury bonds, a view that has driven yields on the tenor lower over the past few days to 2.27%.
China’s 2026 budget report shows 1.3 trillion yuan ($190.73 billion) in ultra-long special treasury bonds will be issued this year, unchanged from last year. The detailed schedule and tenor mix have not been released.
Investors are scooping up Chinese debt, which has stood tall in sliding bond markets globally, betting that China’s low inflation and preparedness for an oil shock allow it to resist raising interest rates. That has fuelled inflows even as other emerging markets see outflows, and has steepened China’s yield curve in contrast to the flattening in the U.S. and other major economies.
The yield spread between China’s 30-year CN30YT=RR and 1-year bonds CN1YT=RR widened to 1.16 percentage points last week, the biggest gap since August 2023.
In 2025, the ultra-long special treasury bond plan was unveiled on April 17.
($1 = 6.8160 Chinese yuan renminbi)
(Reporting by Reuters Staff; Editing by Andrew Heavens and Kate Mayberry)
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