The Agricultural Development Bank of China reissued a policy financial on June 2
bond; the 7-year tranche 25 Nongfa Qingfa 07 (add-on 41) priced with an
anomalously low winning yield of 1.3834% on an issuance up to 3 bln yuan,
roughly 20bp below the prior-day secondary-market yield of 1.61%. The bank's
same-day 2-year add-on 26 Nongfa Qingfa 09 (add-on 9) yielded 1.3750%, leaving
the 7-year only 0.84bp richer than the 2-year. Market participants said a trader
mis-entering a bid meant for the 2-year into the 7-year auction system cannot be
ruled out; market rumors also circulated that an institutional loss exceeded 30
mln yuan, though that has not been confirmed.
