August Net Treasury Issuance Tops RMB 3.4 Trillion, 10-Year Yield Dips Below 1.7%
China's net treasury bond issuance surged past RMB 3.4 trillion in August, a monthly peak since June, while the 10-year yield fell below 1.7%. On September 4, the fifth tranche of 2026 ultra-long special bonds was reissued for the second time this year, with a 20-year tenor and RMB 24 billion size, drawing bids nearly 12 times the offering.
Since June, net issuance in the primary treasury bond market has increased markedly, reaching a peak in August when net issuance exceeded RMB 3.4 trillion. The 10-year government bond yield has fallen below 1.7%.
On September 4, the fifth tranche of 2026 ultra-long special bonds ("26 Ultra-Long Special Bond 05") was reissued for the second time this year. The tranche has a 20-year tenor and a total size of RMB 24 billion, with a bid-to-cover ratio of 11.7 times, as participating funds approached 12 times the reissue size. The bond was first issued in July 2026 with an initial size of RMB 30 billion, followed by a first reissue of RMB 24 billion in August. The coupon rate for this reissue remains unchanged from the initial offering at 2.24%.