The People’s Bank of China successfully issued six-month yuan-denominated bills to totaling 10 billion yuan to various Hong Kong investors.
According to state media, the $1.4 billion issuance reached a 3.6 times subscription ratio with a range of buyers that includes commercial banks, central banks, funds, international financial organizations and other investors in the offshore market. The newly issued half-year government paper yielded 2.89 percent.
A «Global Times» report noted that the move was merely a means to improve the yuan's bold yield curve and internationalization efforts quoting a local academic researcher that described this specific issuance as «a routine operation».
The PBoC began issuing three-month, six-month and one-year paper following an agreement with the Hong Kong Monetary Authority last year. Issuance value has thus far totaled 130 billion yuan ($18.2 billion). Analysts elsewhere had a starkly different view.
Commerzbank’s Singapore-based economist Zhou Hao said that the move was «an attempt to stabilize the yuan ahead of the National Day holiday on October 1 – which will celebrate the 70th anniversary of the founding of the People’s Republic,» as quoted in a «SCMP» report.
