China Local Governments Find It’s No Longer Cheap to Borrow

(Bloomberg) — China’s local authorities are finding it more expensive to sell bonds, the latest sign of rising stress as policymakers ramp up borrowings to stimulate growth and defuse short-term payment risks.

Of the local government yuan bonds sold so far this year, 50 carry coupons with a premium of more than 25 basis points with comparable sovereign debt, according to Bloomberg-compiled data. That’s the most since 2020.