Overall Issuance Situation - In May 2025, the issuance volume of local government bonds reached 779.4 billion yuan, an increase of 86.2 billion yuan month-on-month but a decrease of 124.2 billion yuan year-on-year [5][6] - The net financing amount for May was 554.6 billion yuan, up by 26.5 billion yuan from the previous month but down by 80.3 billion yuan compared to the same month last year [5][6] - The issuance of new special bonds was significant, totaling 443.2 billion yuan, which is a month-on-month increase of 213 billion yuan and a year-on-year increase of 4.8 billion yuan [5][6] Issuance Rates - The weighted average issuance rate for local government bonds in May decreased to 1.87%, down by 5.08 basis points from the previous month [15][17] - The issuance rates for various maturities showed a downward trend, with the 1-year, 2-year, and 3-year rates decreasing by 0.53, 13.00, and 4.02 basis points respectively [15][17] Issuance Spread - The issuance spread of local government bonds narrowed compared to national treasury yields, with most maturities experiencing a decrease in spread [17][19] - The highest spreads were observed in Guangxi and Inner Mongolia, at 21.24 and 19.94 basis points respectively [17][19] Issuance Maturity - The average issuance maturity for local government bonds in May was 14.16 years, which is a reduction of 1.39 years from the previous month [20][23] - The average maturities for new general bonds, new special bonds, and refinancing bonds were shortened by 1.27 years, 1.49 years, and 3.77 years respectively [20][23] Fund Utilization - The primary focus for the utilization of newly issued special bonds remains in infrastructure, with 52.39% of the funds directed towards municipal and industrial park infrastructure, transportation infrastructure, and public services [23][26] - In May, the funds allocated to municipal and industrial park infrastructure decreased by 4.7 percentage points compared to the previous month [23][26] Regional Issuance - A total of 27 provinces and municipalities issued local government bonds in May, with Jiangsu, Sichuan, and Zhejiang leading in issuance scale [2][28] - Cumulatively, from January to May, Jiangsu, Shandong, Sichuan, and Guangdong had the highest issuance volumes, collectively accounting for 32.0% of the total issuance [2][28]

Overall Issuance Situation - In March 2025, the issuance volume of local government bonds was 978.8 billion yuan, a decrease of 326.9 billion yuan month-on-month but an increase of 349.4 billion yuan year-on-year. The net financing amount was 879.2 billion yuan, down 393.6 billion yuan month-on-month but up 594.4 billion yuan year-on-year [3][5]. - The issuance of new special bonds remained high, with a total of 363.5 billion yuan issued in March, a year-on-year increase of 132.7 billion yuan but a slight month-on-month decrease of 28.5 billion yuan. The issuance of refinancing bonds reached 541.3 billion yuan, a year-on-year increase of 178.2 billion yuan [3][5]. Issuance Rates - The weighted average issuance rate of local government bonds rose by 16.77 basis points to 2.09% in March 2025. The issuance rates for various maturities also increased, with the 3-year, 5-year, 7-year, 10-year, 15-year, 20-year, and 30-year bonds rising by 13.72 bps, 16.08 bps, 18.22 bps, 18.12 bps, 24.02 bps, 16.38 bps, and 17.21 bps respectively [15][18]. Issuance Spread - The increase in local government bond rates exceeded that of national treasury yields, leading to a widening of the issuance spreads across all maturities. The spreads for 3-year, 5-year, 7-year, 10-year, 15-year, 20-year, and 30-year bonds increased by 2.89 bps, 7.69 bps, 3.11 bps, 6.46 bps, 9.28 bps, 4.59 bps, and 2.65 bps respectively. Hebei and Henan had relatively high issuance spreads of 24.60 bps and 23.48 bps respectively [15][17]. Issuance Maturity - The average issuance maturity of local government bonds in March was 17.33 years, a slight decrease of 0.22 years from the previous month. The average maturities for new general bonds and new special bonds increased by 0.04 years and 1.99 years to 8.65 years and 19.37 years respectively, while the average maturity for refinancing bonds decreased by 1.61 years to 17.16 years [18][20]. Fund Utilization - The primary focus of the funds raised through new special bonds in March was on infrastructure projects, with 62.25% of the funds allocated to "municipal and industrial park infrastructure," "transportation infrastructure," and "public services," reflecting a 14.11 percentage point increase from the previous month. The amounts allocated to these areas were 95.1 billion yuan, 90.4 billion yuan, and 40.8 billion yuan respectively [23][26].