Money

Yield on China's newly-issued 10-yr T-bonds rises

(Xinhua)
Updated: 2010-10-28 16:08

BEIJING - The yield on China's newly-issued 10-year book-entry bonds rose 38 basis points to 3.67 percent Thursday after the People's Bank of China (PBOC), China's central bank, raised interest rates earlier in the month.

The Ministry of Finance (MOF) said on Thursday it has begun to sell 29.99 billion yuan ($4.48 billion) of 10-year book-entry treasury bonds.

The bonds yield 3.67 percent, 0.38 percentage point more than the 10-year bonds sold on Sept 15.

Related readings:  Bank bonds hit after rate 'shock'  China to issue $4.2b book-entry discount T-bonds  China to float 28b yuan of 5-yr T-bonds this week  China to issue 29b yuan 7-yr treasury bonds

The bonds will be sold through the inter-bank bond market and over the counter at designated commercial banks until Nov 1. They will become tradable on Nov 3.

Interest on the bonds will be paid semi-yearly beginning on April 28, 2011.

The sale is the MOF's 34th issue of book-entry treasury bonds this year.

The PBOC raised the benchmark one-year lending and deposit rate 25 basis points on Oct 20.

After the rate hike, the annual interest rate on three-year deposits in China was raised to 3.85 percent while the rate for five-year deposits was raised to 4.2 percent.