China Development Bank 7-year bond yield at high end of forecast

SHANGHAI: China Development Bank auctioned 20 billion yuan ($3.17 billion) of seven-year fixed-rate bonds in the interbank market on Tuesday at a yield of 3.83 percent, traders said, at the high end of market expectations.

Market forecasts had centred around 3.78 percent and ranged from 3.68 to 3.85 percent.

The result was significantly above Tuesday's indicative secondary market yield of 3.7381 percent bid for seven-year financial bonds issued by policy banks.

CDB also auctioned 10 billion yuan of five-year floating rate bonds at a coupon of 63 basis points over the one-year deposit rate, traders said, below market forecasts.

Traders' expectations had centred around 69 bps and ranged from 65 bps to 71 bps above the one-year deposit rate.