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]