The Ministry of Finance is flooding the bond market with $14 billion of debt to shore up regional government finances as the economy slows, driving yields higher.

The yield on benchmark five-year government notes rose 12 basis points, or 0.12 percentage point, in June to 2.92 percent, as similar-maturity rates in India fell 13 basis points.

The ministry sold 21 billion yuan ($3.3 billion) of five- year bonds at 3.07 percent on Friday on behalf of governments in Qingdao, Guangxi, Hainan, Chongqing, Shaanxi, Gansu and Xinjiang, the second of four such sales planned through July 16.

Agencies - China Daily