The
bonds sale was carried out in the wake of a massive blow sustained by
the US stock market earlier this week, and effectively demonstrates
China’s sway in the international bond market.
Beijing
sold $3 billion of sovereign dollar bonds, making it the third such
sale in the last 14 years.
As
Chinese Ministry of Finance revealed, Beijing sold $1.5 billion worth
of 5-year bonds at 3.25 percent, $1 billion worth of 10-year bonds at
3.5 percent and $500 million worth of 30-year bonds at 4 percent.
This
move, which was described by Bloomberg as "an even bigger
demonstration of China’s pull in the international bond market,"
came in as markets suffered a global rout on Thursday after Wall
Street’s worst losses in eight months.
“The
bond issuance is more like a vote of confidence in China’s
creditworthiness," Ziyun Wang, partner and senior portfolio
manager at DeepBlue Global Investment Ltd, said.
As
Reuters points out, the Chinese bonds were priced at 30, 45 and 70
basis points over US Treasuries for the five-year, 10-year and
30-year bonds, respectively.
The
US-Chinese trade war broke out in July when US President Donald Trump
imposed tariffs on some Chinese imports in order to fix the
US-Chinese $500 billion trade deficit. Since then, the two sides have
exchanged several rounds of import duties on each other in spite of
numerous attempts to resolve the conflict via dialogue.
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