Yields Surge After Ugly 2Y Auction As Foreign Demand Tumbles
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Ugly 5Y Auction Sends Yields To 2 Week High
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China's top economic planner yesterday pledged to support high-quality companies borrowing foreign debts as local government financing vehicles of the country issued a record amount of offshore bonds.
LGFVs have issued a record amount of offshore bonds - including dollar bonds, offshore yuan bonds and those issued in other currencies - so far this year, with sales climbing to US$24.1 billion (HK$188 billion) as of July 22, the highest level since Bloomberg began compiling the data in 2013 and up 79 percent from the same period a year earlier.
Also, China's top companies have raised a record US$14 billion in offshore convertible bonds so far this year.
Offshore convertible bonds from the mainland accounted for 22 percent of global deals,
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