Chinese authority have quietly cut the premium that local governments are required to pay to sell bonds, in a move to reduce their borrowing costs as the world's second largest economy is keen to boost infrastructure investment and local government spending to shore up growth.
Bonds issued on Tuesday by the Jiangxi and Sichuan provincial governments were issued at a coupon rate of 25 basis points higher than the average yields on the equivalent treasury bonds in the previous five days, compared to previous minimum 40 basis points premium, according to traders.
Last August, the Ministry of Finance required . . .
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