China Development Bank 1-year bond yield at 4.30pc

SHANGHAI: China Development Bank auctioned 16 billion yuan ($2.5 billion) of one-year fixed-rate bonds in the interbank market on Thursday at a yield of 4.30 percent, traders said, within market expectations.

Market forecasts had centred around 4.25 percent and ranged from 4.20 to 4.35 percent.

The result was above Wednesday's indicative secondary market yield of 4.2089 percent bid for 1-year financial bonds issued by policy banks.

CDB also auctioned 20 billion yuan of three-year floating rate bonds at a coupon of 89 basis points over the one-year deposit rate, traders said, within market forecasts.

Traders' expectations had centred around 88 bps and ranged from 80 bps to 90 bps above the one-year deposit rate.

Copyright Reuters, 2011