China’s additional sovereign bonds won’t change issuance schedule -sources

SHANGHAI, Oct 31 – China’s issuance of an additional 1 trillion yuan (USD 137 billion) in sovereign bonds will not change the schedule of the central government’s bond issuance during the fourth quarter, three sources with direct knowledge of the plan said.

“The fourth quarter’s issuance schedule was not changed and was still following the original issuance window. No new additional tranches will be added,” one of the sources said.

China’s additional 1 trillion yuan issuance in sovereign bonds will be completed via adjusting the size of each tranche, the sources said.

The Ministry of Finance has asked brokerages to submit bids in a rational manner to ensure smooth operation of the sovereign bond market, the sources said.

The Ministry of Finance has also communicated with China’s central bank to ensure liquidity remains at a reasonable level during such sovereign bond issuance, the sources said.

China last week announced plans to sell additional sovereign bonds to help stimulate economic growth.

The Ministry of Finance and the People’s Bank of China (PBOC) did not immediately respond to Reuters’ requests for comment.

(Reporting by Shanghai Newsroom; Editing by Jacqueline Wong)