China sells ultra-long-term bonds

China is set to begin the first tranche of its super long-term bond issuance this Friday. China is set to begin the first tranche of a 1 trillion yuan ($138 billion) super long-term bond issuance announced by the government in March. According to people familiar with the matter, China will issue 300 billion yuan of 20-year bonds, 600 billion yuan of 30-year bonds, and 100 billion yuan of 50-year bonds between May and November. China’s move toward very long-term bond issuance had raised expectations of support from the central government, especially for local authorities with heavier debt burdens. This will be the fourth time in 26 years that China has resorted to issuing very long-term bonds. The last issuance was carried out in 2020 to support pandemic measures.