FINANCE

China’s Short-Term Offshore Yuan Sovereign Yields Hit Decade Lows

Published: Feb. 12, 2026 4:09 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Photo: VCG

Short-term yields on China’s offshore yuan sovereign bonds fell to their lowest levels in more than a decade as the Ministry of Finance sold 14 billion yuan ($2 billion) of debt in Hong Kong Wednesday, drawing strong investor demand.

The offering was 3.94 times covered, underscoring solid appetite for Chinese assets in the offshore market.

Coupons on the two-, three- and five-year tranches fell to the lowest levels recorded since at least 2013, according to data compiled by Bloomberg.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Short-term yields on China’s offshore yuan sovereign bonds dropped to decade lows as the Ministry of Finance sold 14 billion yuan ($2 billion) in Hong Kong.
The bond sale was 3.94 times oversubscribed; yields for 2-, 3-, and 5-year tranches reached record lows at 1.38%, 1.4%, and 1.57%, respectively.
Strong demand was attributed to dedollarization trends and PBOC measures to support Hong Kong’s yuan bond market.

AI generated, for reference only

What Happened When

January 2026：: People’s Bank of China Deputy Governor Zou Lan outlined measures to support Hong Kong’s offshore yuan market, including increasing sovereign bond supply and improving liquidity.

February 11, 2026：: The Ministry of Finance sold 14 billion yuan ($2 billion) of offshore yuan sovereign bonds in Hong Kong, drawing strong investor demand.

AI generated, for reference only