China to increase pace of government bond issuance in 2016

Reuters reporting Chinese finance ministry sources

  • could issue key tenors of 1,3,57 and 10 year govt bonds as often as once a month increasing the total by 10 or more next year
  • total number of key tenor issuance could increase to 60 or more, vs 49 in 2015
  • may also increase the supply of 30 yr govt bonds in 2016

China has been increasing fiscal expenditure in the past few months to help offset a dramatic slowdown in investment in 2015 linked to local govt fiscal constraints and weaker construction levels

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