Wanted: Global buyers for China's 1.6 trillion yuan muni bond flood

Beijing

AS deregulation drives a world-beating rally in China's stocks, the bond market is crying out for funds.

The government's 10-year note fell for a seventh week, a record losing run, pushing the yield to a four-month high of 3.70 per cent amid a flood of new issuance. The finance ministry estimates local governments will sell at least 1.6 trillion yuan (S$353 billion) of debt this year, four times as much as in 2014, as policymakers rush to clean up off-balance-sheet liabilities.