China Development Bank 5-year bond yield at high end of forecast

SHANGHAI: China Development Bank auctioned 20 billion yuan ($3.17 billion) of five-year fixed-rate bonds in the interbank market on Tuesday at a yield of 3.80 percent, traders said, at the high end of market expectations.

Market forecasts had centred around 3.73 percent and ranged from 3.66 to 3.85 percent.

The result was higher than Wednesday's indicative secondary market yield of 3.6630 percent bid for five-year financial bonds issued by policy banks.

CDB also auctioned 20 billion yuan of 10-year floating rate bonds at a coupon of 77 basis points over the one-year deposit rate, traders said, at the low end of market forecasts.

Traders' expectations had centred around 83 bps and ranged from 73 bps to 90 bps above the one-year deposit rate.