the result must be positive if local governments hold "this bond issuance next pay" attitude

Yesterday, the Shenzhen successful tenders issued $ 2.2 billion worth of government bonds, three-year and five-year bid in a local debt rate and 3.03%, respectively. At this point, by the State Council approval Shanghai, Zhejiang, Guangdong and Shenzhen four local governments issue bonds in their own complete, interest rates stayed below their limit debt levels. Bond issuance rates continue to drop in Shenzhen in Shenzhen yesterday$ 2.2 billion local debt issued by tender, three-year and accounted for half of the five-year period, there were three underwriters of, national development Bank, the industrial and commercial bank, China Construction Bank, respectively. The tender for a single price Netherlands, subject to interest rates, offering interest rates also fell, three-year and five-year bid in a local debt rates respectively and 3.03%。 Will be issued on November 28 and interest, issued on November 30 ending. Prior to this, on November 15, a three-year and five-year bid in a local debt rate and 3.1%, respectively, in accordance with the bond yield curve, two varieties of bid interest rate term bonds with some 3-4 basis points lower. Subsequently issued by the Guangdong provincial government bonds, a three-year period andFive-year bid rates and 3.08%, respectively, interest rate bonds 6-8 basis points lower than the same period, over 6 times times of multiples. On November 21 in Zhejiang Province tenders issued $ 6.7 billion in government bonds, issued interest rates also fell. Three-year and five-year bid in a local debt rate and 3.01%, respectively, with the same period of interest rates hung upside downExtended to 12 basis points. At this point, this place 4 independent debt issued by one of the first place, winning results are displayed "unconventional, non-market" – not only the successful bidder interest rates is significantly lower than the interest rate buy multiples of "popular" also goes far beyond the bonds. Local debt interest rate "unconventional" Reuters news that industry sources, Shenzhen local debt three-Year and five year varieties on offer multiple is 2.44 times and 2.27 times times, lower than the previous Zhejiang debts of 3.8 times and 3.7 times times. Local debt market concern about selling, although this phenomenon and the recent bond market warmed up, yields down related, "but winning rates below treasuries, what is not normal, because local financial strength cannot be higher than in theCentral Finance. "A market participants said. Last week, the net return for the open market and pay deposit, funds were affected, bond yields rose slightly. However, the bid in a local debt interest rates are generally lower, analysts said, although the Shanghai, Shenzhen, Zhejiang, Guangdong and four Government credit quality is fine, but below their limit in the interest rate lower Treasury bond is an "unconventional" phenomenon.Many market participants believe that the local "self issued" local debt, and early this year finance local debt, nature does not differ. And followed by the financial bid in a local debt interest rates higher than interest rates around 10 basis points. This year the Ministry of Finance has issued eight Deputy local debt, of which three-year bid in a local debt interest rate 3.67% per cent, fiveYear bid in a local debt rate 3.7% per cent. Industry noted that theoretically impossible debt rating is higher than the national debt, liquidity is far less than the latter. Issuing rates than treasuries lower, instead of underwriting model has a great relationship. Local debt syndicate selected by the issuer swtor credits, and for financial institutions with close ties to the local economy,In recruiting financial deposits, attract more underwriting business purposes such as, underwriters or active or passive, has a lower tendency to issue interest rate. Market will come to rationality, while the local governments issue bonds in its own pilot made a good start, but does not represent the future of local government bonds will certainly be able to achieve the same success. Industry experts point out that local debt before fiscal deficitDepartment of generations, implied credit by the Central Government, now become local government issued its own, it is stressed the responsibility of local government debt service. Sinolink securities fixed income investment manager Li Dezhi said that bond is not the same as its own independent debt if the future is truly launched a municipal-bond, then the credit of local Government replaced the credits by the Central Government as the principal credit, which means that localDebt won't come, is essential and can get the investors approved, the solvency of the credit history of local government, local to accept the market test. Secondly, as the system level, how to do effective oversight, as well as local independent debt problems must be resolved before the launch. Wang Yao, Deputy Director of the Securities Institute of Fudan University said in media interviews before the base, ifLocal government debt can be standardized, transparent, capability, the result must be positive if local governments hold "this bond issuance next pay" attitude, over-leveraged when carrying out "image projects" result must be negative. Wang Yaoji said regulators may be learnt from the previous local government financing platform exists not specifications not prudent management, supervision, lack of educationThe Institute, "rainy day", do the rules work place debt issues in advance, so as to avoid reappearance "a place on the chaos, a tube of die" situation. China beginning in 2009, on behalf of the local government debt by the Central Government swtor power leveling, local government debt issuance in 2009 and 2010 are $ 200 billion in 2011, also plans to issue 200 billion yuan. While the pilotAmounts of $ 200 billion that is still in the middle of this year within the scope of local bonds. National Audit Office had previously disclosed, of Chinese local government debt outstanding 2010 end reached 10.7 trillion yuan, including financing of government debt accounted for nearly half of the company. Report is expected, after 3-5 the lending cycle, which will be in 2012, 2013Before and after the year usher in the peak of repayment. The local debt pilot "lifted", in relation to financing platform for rescue of the original meaning. "No matter what, the pilot for future local debt how to get there is still a very good reference, investors do not expect just starting to make money, mainly in order to cultivate the market, this is a large cake in the future. "Guotai Junan securities, fixed income researchZhou Wenyuan said. Shanghai Guangdong Shenzhen zhe four local return on bonds issued five-year interest rate three-year interest rate 3.1%3.3% Shanghai Guangdong Shenzhen 3.03%3.25% 3.08%3.29% Zhejiang 3.01%3.24%