Money market conditions remained broadly balanced with a slight easing bias today. In the morning session, major banks offered funds at acceptable levels, though supply from some was average. Joint-stock and city commercial banks were somewhat more active in offering compared to yesterday, while non-bank financial institutions were active. Overnight repo rates for pledged interest rate certificates of deposit (CDs) opened around 1.37%-1.38%, while credit 7-day to 14-day offers opened near 1.38%. Approaching midday, rates across tenors saw minor declines, with overnight offers for pledged interest rate CDs dropping to around 1.36% and credit 7-14 day offers falling to near 1.37%. Post-lunch, rates showed little significant movement. Overnight offers for pledged interest rate CDs hovered around 1.36%-1.37%, while credit 7-14 day offers edged slightly higher to approximately 1.38%, with subdued supply and demand. The balanced-to-easy liquidity conditions persisted through the market close. The People's Bank of China conducted zero-billion yuan in 7-day reverse repo operations today. A total of 177.6 billion yuan in reverse repos matured.
Primary Market (Today's Results)
June 3 Government Bond Results
China Development Bank Results
2Y 09260302Z06 Weighted Average Rate: 1.3651% Marginal Rate: -% Bid-to-Cover Ratio: 5.18x Marginal Multiple: 6.63x
3Y 092603007Z07 Weighted Average Rate: 1.3798% Marginal Rate: -% Bid-to-Cover Ratio: 2.75x Marginal Multiple: 2.15x
Demand for the 2-year bond was acceptable; post-fee issuance was 1.1 basis points lower than secondary market levels at 1.3986, with a moderate inversion. The 3-year floating rate bond issued at 1.3798%.
Treasury Bond Results
28D 269933 Weighted Average Rate: 0.8087% Marginal Rate: 0.8740% Bid-to-Cover Ratio: 4.44x Marginal Multiple: 12.67x
91D 269934 Weighted Average Rate: 0.8844% Marginal Rate: 0.9327% Bid-to-Cover Ratio: 4.37x Marginal Multiple: 7.39x
30Y 2600002X3 Weighted Average Rate: 2.2046% Marginal Rate: -% Bid-to-Cover Ratio: 3.67x Marginal Multiple: 1.56x
Demand for the 1-month bond was strong; post-fee issuance was 19.6 basis points lower than the old bond at 0.874, indicating a severe inversion. Demand for the 3-month bond was acceptable; post-fee issuance was 13.7 basis points lower than secondary market levels at 0.9327, with an acceptable inversion. Demand for the 30-year bond was acceptable; post-fee issuance was 0.1 basis points higher than secondary market levels at 2.2074. Secondary market yields fluctuated upward during the issuance period, with participation primarily from banks and securities firm proprietary desks.
Agricultural Development Bank Results
3Y 260403X16 Weighted Average Rate: 1.3745% Marginal Rate: -% Bid-to-Cover Ratio: 5.6x Marginal Multiple: 4.93x
5Y 250425X28 Weighted Average Rate: 1.4691% Marginal Rate: -% Bid-to-Cover Ratio: 4.35x Marginal Multiple: 14.06x
10Y 250430X43 Weighted Average Rate: 1.749% Marginal Rate: -% Bid-to-Cover Ratio: 4.97x Marginal Multiple: 2.16x
Demand for the 3-year bond was acceptable; post-fee issuance was 3.2 basis points lower than secondary market levels at 1.4003, with an acceptable inversion. Demand for the 5-year bond was acceptable; post-fee issuance was 2.1 basis points lower than secondary market levels at 1.4994, with an acceptable inversion. Demand for the 10-year bond was acceptable; post-fee issuance was 2.0 basis points lower than secondary market levels at 1.7684, with an acceptable inversion.
June 3, 2026 Commercial Paper Issuance Results
[1.48%] 26 Tongkun SCP007 0.73Y 5b AA+/-- [1.4-1.54%]
[1.63%] 26 Bengang Group SCP001 0.24Y 14b AAA/-- [1.4-1.8%]
[1.37%] 26 Capital Airports Holding CP001 1Y 10b AAA/-- [1.26-1.46%]
[1.49%] 26 Ganzhou Urban Construction SCP001 0.74Y 8.2b AA+/-- [1-2%]
[1.34%] 26 Tiancheng Leasing SCP018 0.46Y 10b AAA/-- [1.3-1.44%]
[1.7%] 26 Jinding Chanrong SCP001 0.74Y 5b AA+/-- [1.7-2.2%]
[1.43%] 26 Suzhou High-tech SCP014 0.52Y 4b AAA/-- [1.25-1.45%]
[1.41%] 26 Taizhou Urban Construction SCP003 0.49Y 5b AAA/-- [1.3-1.8%]
[1.47%] 26 Jushi SCP005 0.73Y 4b AAA/-- [1.35-1.47%]
[1.38%] 26 Shanghai Electric Power SCP009 0.47Y 21b AAA/-- [1.33-1.43%]
[1.29%] 26 COFCO SCP003 0.1Y 15b AAA/-- [1.2-1.4%]
[1.36%] 26 Kunshan Venture SCP001 0.74Y 5b AAA/-- [1.3-1.6%]
[1.49%] 26 Guoxin Factoring SCP004 0.65Y 11.2b AAA/-- [1.29-1.49%]
[1.46%] 26 Suzhou Energy SCP002 0.74Y 2b AAA/-- [1.3-1.6%]
June 3, 2026 Credit Bond Issuance Results
[1.68%] 26 Zhejiang Merchant Asset MTN002 3+2Y 5b AAA/-- [1.4-2.4%]
[2.22%] 26 Anhui Investment Group MTN002(Sci-Tech Innovation Bond) 10Y 5b AAA/-- [2-2.5%]
[1.99%] 26 Lianyun Urban Construction MTN004 5Y 3.84b AAA/-- [1.7-2.7%]
[1.94%] 26 Lianyun Urban Construction MTN003 5Y 6.16b AAA/-- [1.7-2.7%]
[1.75%] 26 Sichuan Development Longmang MTN001 3Y 15b AA+/-- [1.5-2.1%]
[1.79%] 26 Hebei Iron & Steel Group MTN015 3Y 10b AAA/-- [1.52-1.82%]
[1.72%] 26 Keqiao Development MTN001 3Y 10b AAA/-- [1.5-2%]
[1.61%] 26 China Railway Shanghai Investment MTN001 3Y 10b AAA/-- [1.6-2.3%]
[2%] 26 Ancheng Capital MTN001(Sci-Tech Innovation Bond) 3Y 5b AA+/-- [2-3%]
[2.03%] 26 Jiashan High-tech MTN002 5Y 6b AA+/-- [1.6-2.6%]
Primary Market (June 4)
June 4 Bookbuilding for Government Bonds
Total government bond issuance of 60.443 billion yuan: Treasury Bonds 0b + Policy Bank Bonds 29.0b + Local Government Bonds 31.443b.
No Treasury Bond issuance.
China Development Bank (09:30-10:30)
26 CDB Qingfa 02 (Reopening 3) 5.0b 3Y 1.49% Dutch Auction
26 CDB Qingfa 04 (Reopening 17) 2.0b 7Y 1.94% Dutch Auction
26 CDB Qingfa 05 2.0b 10Y - Dutch Auction
26 CDB 01 (Reopening 12) 4.0b 365D 1.51% Dutch Auction
26 CDB 03 (Reopening 18) 6.0b 5Y 1.69% Dutch Auction
Export-Import Bank of China (10:00-11:10)
26 Exim 04 (Reopening 2) 7.0b 365D 1.29% Dutch Auction
25 Exim 55 (Reopening 15) 3.0b 5.5041Y 1.6% Dutch Auction
Today's Local Government Bond Bookbuilding
General Government Bonds (10:30-11:10)
26 Fujian Bond 12 9.08994b 7Y Dutch Auction
Special Government Bonds (10:30-11:10)
(Refinancing Special Bond (Phase IV)) 26 Fujian Bond 13 0.29b 3Y Dutch Auction
(Refinancing Special Bond (Phase V)) 26 Fujian Bond 14 22.06296b 10Y Dutch Auction
Tomorrow's Commercial Paper Issuance Information
26 Bengang Group SCP002 117D 21.00b AAA/-- [1.40-1.80%]
26 Xingye Asset SCP003 140D 5.00b AAA/-- [1.30-1.60%]
26 Huaneng Zhejiang SCP001 223D 5.00b AAA/-- [1.25-1.55%]
26 Wenzhou Transport SCP002 270D 2.00b AA/-- [1.45-1.95%]
26 Yili Caitong SCP002 270D 5.00b AA+/-- [1.40-2.20%]
26 Hailiang SCP001 270D 5.00b AA+/-- [3.20-3.70%]
26 Guoneng Capital SCP003 270D 10.00b AAA/-- [1.30-1.50%]
26 Chengfa Environment SCP001 270D 5.00b AAA/-- [1.40-1.67%]
26 Shandong Shipping SCP001 270D 5.00b AAA/-- [1.30-2.00%]
26 Quanzhou Culture & Tourism SCP002 270D 5.00b AA+/-- [1.30-1.70%]
26 Rizhao Urban Investment CP001 1Y 2.46(0.00~2.46)b AA+/-- [1.10-2.10%]
26 Capital Airports Holding CP002 1Y 10.00b AAA/-- [1.26-1.46%]
Tomorrow's Medium-Term Note Issuance Information
26 CCCC Real Estate MTN003A 2Y 7.50(0.00~15.00)b AAA/-- [2.40-3.40%]
26 Zhongchu Development MTN001 2Y 5.00b AAA/-- [1.50-1.70%]
26 Jidong Cement MTN001 3Y 10.00b AAA/-- [1.50-2.10%]
26 Fuyao Glass MTN002 3Y 5.00b AAA/-- [1.50-2.10%]
26 Lishui Chantou MTN001 3Y 6.00b AAA/-- [1.41-1.81%]
26 CCCC Real Estate MTN003B 3Y 7.50(0.00~15.00)b AAA/-- [2.80-3.80%]
26 Jingchengtou MTN001 3Y 10.00(0.00~10.00)b AAA/-- [1.70-2.70%]
26 Zhenjiang Chanye Development MTN006 3Y 1.00b AAA/-- [1.50-2.00%]
26 Bohai Investment MTN001A 5Y 3.00(0.00~5.00)b AA+/-- [2.20-3.00%]
26 Bohai Investment MTN001B 3Y+2Y 2.00(0.00~5.00)b AA+/-- [1.80-2.60%]
26 Financial Capital MTN002 5Y 21.00b AAA/AAA [1.80-2.80%]
26 Shaanxi Natural Gas MTN001 5Y 5.50b AA+/-- [1.60-2.20%]
26 Jiangsu Communications MTN006 5Y 20.00b AAA/-- [1.50-1.90%]
26 C&D Real Estate MTN003 3Y+2Y 13.00(0.00~13.00)b AAA/AAA [2.20-2.80%]
26 Xinyang Construction Investment MTN001 5Y 7.00(0.00~7.00)b AA+/-- []
26 Yulong Asset MTN001 5Y 10.00b AA+/-- [1.70-2.70%]
26 China Construction Investment MTN002 10Y 10.00b AAA/AAA [2.03-2.53%]
June 4 ABS Bookbuilding
CSC Financial-Xiyue No.46 Asset-Backed Special Plan
Lead Underwriter: CSC Financial
Timing: Xiyue 46 Senior 604m 1Y 2027/06/04 AAA; Xiyue 46C 1m 1Y 2027/06/04 -
Industrial Securities Yuanrong-Xingzhi Phase 3 Asset-Backed Special Plan (Renewable)(Tranche 3)
Lead Underwriter: Industrial Securities
Timing: 3 Xingzhi 3A 358m 0.6Y 2027/01/07 AAA; 3 Xingzhi 3B 22m 0.6Y 2027/01/07 AA+
Sealand Securities-Tongsheng Leasing Phase 16 Inclusive Asset-Backed Special Plan
Lead Underwriter:
Timing: Tong 16 Senior A1 300m 0.8Y 2027/03/26 AAA; Tong 16 Senior A2 336m 1.8Y 2028/03/26 AAA; Tong 16 Senior A3 220m 2.8Y 2029/03/26 AAA; Tong 16 Sub 48m 5.1Y 2031/06/26 -
Guosheng Asset Management-Ruyi Phase 2 Asset-Backed Special Plan (Data Assets)
Lead Underwriter:
Timing: Guosheng Sudan 3 Senior 499m 3Y 2029/06/05 AA+; Guosheng Sudan 3 Sub 1m 3Y 2029/06/05 -
CMB Yuanhe Cui 2026 Phase 5 Non-Performing Asset-Backed Securities
Lead Underwriters: Galaxy Securities/Guotai Junan Securities/China Merchants Securities
Timing: 09:30-18:00; 26 CMB Yuanhe Cui 5 Senior 304m 3.5Y 2029/12/26 AAA; 26 CMB Yuanhe Cui 5C 79m 5Y 2031/06/26 -
Huzhou City Group Agricultural Products Logistics Distribution Center Holding-Type Real Estate Green Asset-Backed Special Plan (Rural Revitalization)
Lead Underwriter:
Timing: G Huzhou Agricultural Market 01 550m 32Y 2058/06/09 -
Weineng Battery-Huaneng Trust 2026 Phase 1 Green Sci-Tech Innovation Asset-Backed Special Plan
Lead Underwriters: CICC/Everbright Securities/Industrial Securities
Timing: Weineng Green Innovation 2026-1 Senior A1 150m 0.9Y 2027/04/20 AAA; Weineng Green Innovation 2026-1 Senior A2 300m 2.9Y 2029/04/19 AAA; Weineng Green Innovation 2026-1 Senior A3 330m 5Y 2031/05/20 AAA; Weineng Green Innovation 2026-1 Senior A4 100m 5.5Y 2031/12/18 AAA; Weineng Green Innovation 2026-1 Senior A5 40m 5.7Y 2032/02/19 AAA; Weineng Green Innovation 2026-1 Sub A 20m 5.8Y 2032/03/18 -; Weineng Green Innovation 2026-1 Sub B 60m 11.8Y 2038/03/18 -
Other Financial Institution Bonds
No bookbuilding today.
Enterprise Bond Bookbuilding
None today.
Corporate Bond Bookbuilding
26 Caitong G6 - Small Public Offering Caitong Securities June 4 Total Issuance 2.0b (No base size, with clawback) 3Y -/- Huatai United Securities Co., Ltd. SSE
26 Caitong G7 - Small Public Offering Caitong Securities June 4 Total Issuance 2.0b (No base size, with clawback) 5Y 5/AAA Huatai United Securities Co., Ltd. SSE
26 Far East Three - Small Public Offering Far East Leasing June 4 1.5b 1Y+1Y 2/AAA Guotai Junan Securities Co., Ltd., Guosen Securities Co., Ltd., Huaxin Securities Co., Ltd. SSE
26 Hangzi 01 - Small Public Offering Hangzhou Capital June 4 Total Issuance 1.0b (No base size, with clawback) 3Y 3/ CSC Financial Co., Ltd., Huatai United Securities Co., Ltd. SSE
26 Guijiao Y3 - Small Public Offering Guangxi Communications Investment June 4 1.5b 3Y+NY 3/- GF Securities Co., Ltd., CSC Financial Co., Ltd., CITIC Securities Co., Ltd., China Merchants Securities Co., Ltd., Shenwan Hongyuan Securities Co., Ltd. SSE
26 Zhongxin 01 - Small Public Offering Zhongxin Group June 4 1.0b 3Y 3/ Soochow Securities Co., Ltd., DBS Bank (China) Ltd. SSE
26 Zhaozheng C1 - Small Public Offering China Merchants Securities June 4 Total Issuance 7.0b (No base size, with clawback) 3Y 3/- CITIC Securities Co., Ltd., Guotai Junan Securities Co., Ltd., GF Securities Co., Ltd., Everbright Securities Co., Ltd. SSE
26 Yugao 01 - Small Public Offering Chongqing Expressway June 4 0.5b 5Y 5/ CITIC Securities Co., Ltd., CSC Financial Co., Ltd., Guotai Junan Securities Co., Ltd., Shenwan Hongyuan Securities Co., Ltd. SSE
26 Zhaozheng C2 - Small Public Offering China Merchants Securities June 4 Total Issuance 7.0b (No base size, with clawback) 5Y 5/- CITIC Securities Co., Ltd., Guotai Junan Securities Co., Ltd., GF Securities Co., Ltd., Everbright Securities Co., Ltd. SSE
26 Hangzi 02 - Small Public Offering Hangzhou Capital June 4 Total Issuance 1.0b (No base size, with clawback) 5Y 5/ CSC Financial Co., Ltd., Huatai United Securities Co., Ltd. SSE
26 Yicheng 03 - Small Public Offering Yixing Urban Construction June 4 0.43b 3Y+2Y 5/- Tianfeng Securities Co., Ltd., Hengtai Changcai Securities Co., Ltd. SSE
Today's Private Placement Bookbuilding
Xiangtan High-tech Group Co., Ltd. 2026 Private Placement Corporate Bonds to Professional Investors (Phase I)(Tranche I) Xiangtan High-tech June 4 Total Issuance 1.05b 2Y 1.60%-2.60% -/- Shenwan Hongyuan Securities Co., Ltd. SSE
Xiangtan High-tech Group Co., Ltd. 2026 Private Placement Corporate Bonds to Professional Investors (Phase I)(Tranche II) Xiangtan High-tech June 4 Total Issuance 1.05b 3Y 1.80%-2.80% 3/ Shenwan Hongyuan Securities Co., Ltd. SSE
Jinhua Rail Transit Group Co., Ltd. 2026 Private Placement Corporate Bonds to Professional Investors (Phase I) Jinhua Rail Transit Group June 4 0.6b 3Y 1.30%-2.30% (incl. limits) 3/- China International Capital Corporation Ltd. SSE
Yichang Urban Development Investment Group Co., Ltd. 2026 Private Placement Corporate Bonds to Professional Investors (Phase I) Yichang City Development Group June 4 1.5b 3Y 1.5%-2.5% 3/ Orient Securities Co., Ltd. SSE
Huzhou Nanxun State-owned Assets Investment Holding Co., Ltd. 2026 Private Placement Corporate Bonds to Professional Investors (Phase I) Nanxun State-owned Assets June 4 0.361b 3Y 1.70%-2.30% 3/- Minmetals Securities Co., Ltd., Tebon Securities Co., Ltd. SSE
Huzhou Wuxing South Taihu Lake Construction Investment Group Co., Ltd. 2026 Private Placement Corporate Bonds to Professional Investors (Phase I) South Taihu Lake Construction June 4 2.0b 3Y 1.6%-2.6% 3/ Orient Securities Co., Ltd., China Galaxy Securities Co., Ltd. SSE
Suzhou Xiangcheng State-owned Capital Investment Co., Ltd. 2026 Private Placement Corporate Bonds to Professional Investors (Phase II) State-owned Investment Company June 4 0.8b 5Y 1.80%-2.80% 5/- Soochow Securities Co., Ltd. SSE
Suzhou Rail Transit Group Co., Ltd. 2026 Private Placement Corporate Bonds to Professional Investors (Phase III) Suzhou Rail Transit June 4 1.0b 5Y 1.60%-2.60% 5/ Soochow Securities Co., Ltd. SSE
Leshan State-owned Assets Investment Operation (Group) Co., Ltd. 2026 Private Placement Low-Carbon Transition-Linked Corporate Bonds to Professional Investors (Phase I) Leshan State-owned Investment Group June 4 1.12b 5Y 1.80%-2.80% 5/- GF Securities Co., Ltd., Guotai Junan Securities Co., Ltd., China International Capital Corporation Ltd. SSE
Dongguan Houjie Holding Group Co., Ltd. 2026 Private Placement Corporate Bonds to Professional Investors (Phase I) Houjie Holding Group June 4 0.2b 5Y 1.80%-2.80% 5/ Dongguan Securities Co., Ltd. SZSE
Jiangsu Huanghai Financial Holding Group Co., Ltd. 2026 Private Placement Low-Carbon Transition-Linked Corporate Bonds to Professional Investors (Phase I) Huanghai Financial Holding June 4 0.4b 5Y 1.90%-2.90% 5/- Guotai Junan Securities Co., Ltd., Soochow Securities Co., Ltd. SSE
Ningbo Chane Investment Management Co., Ltd. 2026 Private Placement Corporate Bonds to Professional Investors (Phase I) Chane Company June 4 1.0b 3Y+2Y 1.50%-2.50% 5/ Yongxing Securities Co., Ltd. SZSE
Secondary Market
Deposits
Interbank certificate of deposit (NCD) prices were largely unchanged from yesterday. Deposit-taking banks continued to actively absorb funds. Non-bank financial institutions primarily focused on tenors expiring in Q4 2026 to Q1 2027, with overall trading activity decent.
Government Bonds
Trading in the bond market was active today. The market continued its correction, with yields broadly moving higher, though yields within 3 years saw slight declines. Treasury bond futures fluctuated within the session. Local government bond trading was average, with more activity in medium-to-high quality regions and ultra-long tenors.
Credit Bonds
Sentiment in the secondary market for commercial paper and NCDs was muted today. Looking at state-owned joint-stock bank spot yields across tenors: end-June 1.27%, end-September 1.365%, end-December 1.37%, end-March next year 1.415%, and one-year 1.435%. Interbank short-term bond sentiment was also subdued, with weak trading activity. Transactions were mostly executed around valuation or with small premiums. AAA-rated paper traded: Q2 at 1.37%-1.45%, Q3 at 1.38%-1.45%, Q4 around 1.4%, and Q1 next year at 1.4%-1.45%.
Medium-term note trading was active, with demand concentrated in 1-5 year AAA and AA+ rated issues. Yields declined, with closing trades executed at discounts to valuation.
Enterprise bond and corporate bond trading was active. Yields showed little significant change, with demand focused on 2-5 year AAA rated issues. Closing trades were executed near valuation levels.
Bank bond trading was active, with yields edging slightly higher. Closing trades were executed at premiums of around 1 basis point to valuation.
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