MOF Fails to Auction Entire Batch of Local Gov't Bonds

(Beijing) – The Ministry of Finance failed to sell some of its three-year local government bonds in its first auction so far in 2011, on a lukewarm response from the market to the bond issuance.

On July 11, the MOF launched an auction on behalf of local governments for 25.4 billion yuan in five-year bonds and 25 billion yuan in three-year bonds. Yield rates were 3.84 percent and 3.93 percent, respectively. However, about 1.1 billion yuan worth three-year bonds failed to garner bids.