China's 2015 first municipal bonds draw yields near sovereign debt's

Shanghai

CHINA's Jiangsu province auctioned 52.2 billion yuan (S$11.2 billion) of three to 10-year municipal bonds on Monday at close to sovereign yields, offering some reassurance that Beijing's drive to boost its municipal bond market this year will succeed.

Jiangsu, one of China's most indebted provinces, auctioned five- year bonds for 3.12 per cent, just seven basis points above sovereign debt of the same tenure. Longer and shorter maturity bonds, likewise, debuted in a tight range above sovereign yields.