Subscription multiples up to 5.16 times times agricultural issue floating debt is again strongly sought after

The Agricultural Development Bank 25th issued the first issue of the Year 5-year floating-interest financial debt. The distribution results show that the current issue benchmark for the March Shibor financial bonds, driven by the tide of capital, the final bid spreads are 20 basis points, much lower than the market expectations.　　Analysts said the high level of capital allocation pressure directly led to the current issue of ultra-low interest rates in financial debt, and because of the expected shibor future upward, all types of institutions are in favor of this issue. The subscription rate is more than 5 times times. The subscription summary published by the agricultural issue on 25th showed that the basic circulation of 10 billion yuan in this issue amounted to 51.62 billion yuan of effective funds subscribed, corresponding to the subscription multiple of 5.16 times times. It is noteworthy that the bank issued a 5-year fixed-term interest-rate subscription at the end of April only 1.6 times times.　　The sharp contrast between 5.16 times and 1.6 times times directly shows the enthusiasm of the current market funds subscription. Analysts said that after January, the market conditions of the bond market has not been the same. The opening of the National Bank of 12th this month, the public issued 2009-year 10-year floating rate bonds, the first round of 12.13 billion yuan in the total amount of tender to obtain the total amount of effective investment capital of up to 65.82 billion yuan, 5.43 times times the subscription rate, the annual record of the highest subscription rate recorded.　　The market's pursuit of new debt is on the verge of a climax. The specific tender situation yesterday showed that the benchmark for the 5-year floating financial debt of the agricultural issue for the current period was the 5th mean value of 3 months Shibor. The bid spreads were 20 basis points, much lower than previous market expectations. At the end of the first 10 billion Yuan bid, the current issue of floating financial debt received an additional subscription of $5 billion and the final issue amounted to $15 billion.　　A fund trader involved in the bid said the market is expected to issue interest rate benchmarks Shibor future upward, making this issue a common favor for all types of institutions.　　The high pressure of buying debt for the current issue of floating interest debt, Guotai analyst Lin Chaohui said that while the risk aversion of floating-interest debt had a significant impact on the subscription to the current issue, the main reason for the subscription boom still came from the high level of market capital, and the pressure on the capital allocation. Lin Chaohui said that as credit growth slowed down, big bank in the capital use of unprecedented pressure, so large institutions in the first-tier market, the enthusiasm for debt is high. He also stressed that although the possibility of long-term inflation can not be ruled out, but the risk aversion of floating-interest debt is in fact relatively limited. On the one hand, the "low profits" of the current floating-interest debt are not very cost-effective relative to the fixed-interest debt issued at the time, and the value of the floating-interest debt will be greatly compromised once the current low interest-rate deflationary environment continues.　　In the case of agricultural issue of the 5-year floating financial debt, the nominal interest rate at the time of issue is only 1.41%, which is much lower than the interest rate of the current fixed-term financial debt. In fact, the main body of the new debt subscription since May is stillMain Line. The 5-year financial debt issued on May 5, more than 70% of the size of the issue was subscribed by banking institutions, including the postal bank and the four major lines of the successful bidder is very impressive. And the National Bank issued May 12 floating-rate financial debt, but also mainly into the banking bag. Some analysts said that the current big bank to buy debt to a large extent already some "involuntarily", and in the financial side of the pattern of continued easing, this phenomenon is expected to continue for a long time.