On Friday, China's finance ministry successfully auctioned its first batch of 30-year special government bonds at a yield of 2.20%, marking the lowest yield for this tenor since November 2025. The 85 billion yuan tranche attracted significant interest, with a bid-to-cover ratio of 3.58 times. Analysts attribute the favorable yield to receding inflation concerns associated with the ongoing Middle East conflict, leading to improved market sentiment for ultra-long bonds. Additionally, the average overnight repo rate in the interbank market has dropped to 1.2%, the lowest since August 2023. The ministry plans to stagger future bond issuances from April to October to mitigate liquidity shocks, with the first tranche of these bonds expected to start trading on April 29. Furthermore, Beijing intends to continue issuing such bonds annually from 2024 to support crucial national strategies.