Central Huijin Investment Corporation auctioned seven-year bonds on China's interbank market Tuesday, at a coupon rate well below forecast.
Analysts say it reflects strong demand for the issuer's high credit standing, amid ample liquidity. Huijin auctioned 20 billion yuan of the bonds at a coupon rate of 3.16 percent. It was well below the market's earlier forecast of 3.27 percent.
Huijin also auctioned 20 billion yuan of 20-year bonds at a coupon rate of 4.05 percent. Traders are expecting the issue to increase once demand proves strong, via a greenshoe option of 6 million yuan for the seven year issues.