The Chinese central bank plans to issue its third and fourth tranches of central bank bills for the year in mid-May according to domestic media reports.
Shanghai Securities Journal reports that the People’s Bank of China will auction the third and fourth tranches of central bank bills for 2019 on 15 May via the Hong Kong Monetary Authority’s Central Moneymarkets Unit.
The sales will be for the purpose of “enriching Hong Kong’s high-credit rating renminbi financial products and improving the Hong Kong renminbi yield curve,” and conducted in accordance with the “Cooperative Memorandum Concerning Use of the Central Moneymarkets Unit for the Issuance of People’s Bank of China Bills” (关于使用债务工具中央结算系统发行中国人民银行票据的合作备忘录) executed between PBOC and HFMA.
The third tranche of central bank bills will have a term of 91 days and be fixed rate coupon bonds that repay principal and interest upon maturity.
The issuance volume will be 10 billion yuan, and the value date will be 17 May 2019 for a maturation date of 16 August 2019.
The fourth tranche of central bank bills will have a term of one year and also be fixed rate coupon bonds, providing interest payments each half.
The issuance volume is also 10 billion yuan, with a value date of 17 May 2019 and a maturation date of 17 May 2020.