China's finance ministry sells 3-, 5-year bonds on behalf of local govts

SHANGHAI: China's finance ministry auctioned 41.6 billion yuan ($6.57 billion) of three-year and five-year bonds on behalf of seven regional governments at yields of 3.47 percent and 3.58 percent, respectively, traders said on Friday.

It auctioned 20.6 billion yuan in three-year tenors and 21.0 billion yuan in five-year tenors.

The ministry has said it plans to issue a total of 200 billion yuan in bonds on behalf of local governments this year. Municipal and provincial governments are currently not allowed to raise funds in the debt market directly.