China has launched sovereign euro bonds worth up to €5 billion, which could be the largest such issuance in the country’s history. The Chinese Ministry of Finance has set yield benchmarks for bonds with maturities of 5, 8, and 12 years at 15, 22, and 33 basis points above the interbank rate, respectively. The final placement price will be determined on 25 June.

Normally, Beijing enters the European debt market once a year from September to November, but the current placement started just seven months after the €4 billion November issue, which generated record demand of over €100 billion. According to the head of fixed-income Asian securities, Fidelity International Lee Zhu, China has benefited from a favorable market window, aiming for a favorable position before the possible increase in inflationary pressure and tightening of European Central Bank policy in the second half of the year.