China Offshore Yuan Bonds Priced at Record Lows Amid Rally

China’s finance ministry sold government bonds in Hong Kong at record-low yields for most maturities, as offshore pricing closely tracked a rally in China’s onshore bond market. On Friday, it issued 15.5 billion yuan (about $2.3 billion) of notes, with yields on the two-, five- and 10-year securities moving in line with the strength seen in the mainland. The move highlights how offshore yuan bond demand is reacting to improving sentiment in domestic rates. The record-low pricing underscores the market’s momentum and the expectation of continued support from policy-driven liquidity.