99% of the annual issuance of local government bonds from January to November

According to the Ministry of Finance on December 3, in accordance with the decision-making and deployment of the Party Central Committee and the State Council, the Ministry of finance will actively guide local governments to speed up the issuance of local government bonds (hereinafter referred to as local bonds) in 2019. From January to November, 4324.4 billion yuan of local bonds were issued, 99% of the annual issuance tasks were completed, including 3035.4 billion yuan of new bonds, 1146.1 billion yuan of refinancing bonds and 142.9 billion yuan of replacement bonds. Among the new bonds, general bonds and special bonds were issued with 905.7 billion yuan and 2129.7 billion yuan respectively. From January to November, the issuance of local bonds mainly has the following characteristics: first, the average issuance interest rate is reduced. From January to November, the average issuing interest rate of local bonds was 3.47%, a year-on-year decrease of 43 basis points; compared with the yield of national bonds, it rose by 27 basis points on average, with differentiation in different regions, and the interest margin between individual regions and national bonds exceeded 60 basis points. The second is the extension of the average issuance period. On the basis of keeping 3-10-year medium-term and long-term bonds as the main varieties, the issuance of 15-year, 20-year, 30-year and other ultra long-term varieties increased further. From January to November, the average issuing period of local bonds was 10.2 years, an increase of 4.1 years on a year-on-year basis. The third is the further improvement of secondary market liquidity. From January to November, the trading volume of local bonds in cash was 9.01 trillion yuan, an increase of 5.52 trillion yuan on a year-on-year basis; the turnover rate (cash bond trading volume / total custody) was 0.46 times, an increase of 0.25 times on a year-on-year basis; the scale of pledge style repo was 17.45 trillion yuan, an increase of 3.09 trillion yuan on a year-on-year basis.