On May 13, China’s Ministry of Finance (MOF) issued arrangements relating to the issuance of general treasury bonds and ultra-long special sovereign bonds in 2024, aiming to support the real economy. In particular, a 30-year special sovereign bond worth RMB 40 billion ($5.6 billion) will be the first to be issued on May 17.
According to the MOF’s plan, China will issue RMB 1 trillion ($140.8 billion) of ultra-long special sovereign bonds in 2024, which will be divided into three varieties, 20-year, 30-year and 50-year bonds, on all of which interest will be paid every half year. The first 20-year special sovereign bond will be issued on May 24, while the first 50-year special sovereign bond will be issued on June 14. Moreover, special sovereign bonds will be issued six times in the April-June period this year, 10 times in the July-September period, and six times in the October-December period this year.
The issuance of ultra-long special sovereign bonds will also support sentiments in the steel market.
$1 = RMB 7.1053