Local Govt Bond Rates Up, Issuance Slows

Local governments were expected to issue 5 trillion yuan in bonds this year, but the current total is 866.8 billion yuan, or about 17 percent of the total, with more than 33 percent of the year gone. Of the bonds issued, 93 percent was maturing debt rolled over, only 7 percent was new issuance. Banks bought 80 percent of the bonds. The slowdown in bond issuance comes as rates are rising:
In late April, the interest rate of local bonds was about 40BP higher than that of the same period. By the end of April and the beginning of May, the interest rate of local bonds was raised by about 50BP. May 5, Heilongjiang issued a number of local debt, interest rate range 55-77BP.
iFeng: 地方债发行利率上浮明显进度慢:目前仅占全年17%

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