The domestic bond market imbalance between supply and demand

Late in financing area under relatively pessimistic expectations, with asymptotic, inter-bank bond market continued dismal returns. Yesterday for more than 500 one hundred million yuan of local government bonds (hereinafter referred to as "local debt") the bid-winning rate hit a record high level, low bid ratio dropped to years. On the same day, high-profile 10-year yields to 4% mark.

Is a tighter liquidity on the one hand, on the one hand, is the bond interest rate is high, the bond market supply and demand imbalance continues. In the supply of close to $200 billion last STD seamless steel pipe ASME B36.10m tube week after the peak, in the rest of this week, there will be 20 billion yuan, 18 billion yuan agriculture development bonds, 30 billion yuan and 11.2 billion yuan of local government debt in shandong province for bidding, close to 80 billion yuan.

The local government debt by the ministry of finance agency tianjin, henan, yunnan, shaanxi provinces and cities, including 3 - and 5-year two fixed-rate variety, size is 25.3 billion yuan and 25.5 billion yuan astm a234 CS seamless elbow R=1.5D respectively, amounted to 50.8 billion yuan.

According to the central Treasury securities registration and clearing corporation (hereinafter referred to as "the debt's") announced yesterday, this three-year bonds varieties TouBiaoLiang 28.62 billion yuan, bid ratio 1.13 times; Five-year TouBiaoLiang varieties of 28.37 billion yuan, ASTM A234 socket welding pipe fitting tee bid ratio 1.11 times, both the local government debt and bid ratio low so far this year.

More notable is that interest rates. According to disclose, varieties of three-year bonds coupon or fixed in-terest rate 4.29%, in current five-year varieties coupon rate of 4.43%, as the highest form of local government debt was born in 2009, respectively, than the previous trading day of the secondary market yields higher than the 16.69 and 23.83 basis points. Twice in the same period last year compared with the period of local government debt tender, nominal interest rates rise by more than 100 basis points.Several interbank traders to "first financial daily" reporter said: "the current market environment, institutional configuration will slump, funds rate rising rapidly, the supply is so big, can be filled." On Thursday, under the huge pressure to supply, the export-import bank of China new debt-financed appeared flow standard.