China’s 2026 Ultra-Long Special Government Bonds: A New Benchmark

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China's 2026 Ultra-Long Special Government Bonds: A New Benchmark

Introduction to China’s 2026 Bond Issuance

On April 24, China officially commenced the issuance of ultra-long special government bonds, marking a significant event in the financial market. This initiative includes the offering of a record-breaking 30-year note, alongside 20-year bonds, aimed at bolstering major national strategies.

Details of the Issuance

The first batch of bonds consists of 20-year notes valued at 34 billion yuan and a remarkable 30-year note totaling 85 billion yuan. This 30-year offering surpasses last year’s maximum of 71 billion yuan, illustrating a robust response to market demand. The introduction of the first-ever 50-year bonds is also anticipated, launching on May 6.

Market Implications

Market analysts predict that the introduction of these significant bonds will trigger a “bond swap” as the new 30-year bond becomes the benchmark. Existing 30-year bonds may see a decrease in value due to this new issuance. While the overall sentiment surrounding the plan appears relatively neutral for the bond market, the market’s appetite for these long-term offerings will be closely observed.

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