Photo: Jakob Mantrasio via Flickr
We’ve been talking a lot of about China’s worsening local government debt situation.Today, bond-buyers had their say. China had a 3-year local government debt sale, and it didn’t work out as well as they’d hoped.
The ministry sold 23.9 billion yuan ($3.7 billion) of bonds at a yield of 3.93 per cent on behalf of 11 provinces and municipalities, falling short of its 25 billion yuan target, said a trader at a finance company required to bid at the auction.
The central government plans to sell 200 billion yuan of this debt by the end of the year, this was its first attempt.
By the way, this isn’t the first time Chinese debt has under-performed recently. 182-day debt sold less than expected an an auction last week, as did a sale of 1 year bonds last month.