China bonds get muted response pre-Fed meeting

A pair of Chinese local government financing vehicles LGFVs tapped the international bond markets this week, braving the market ahead of the US Federal Reserve's monetary policy meeting next week.

But with most investors waiting on the sidelines for signals from the Fed, Yunnan Energy and Zhenjiang Transportation struggled to entice investors, who had seen $2.1 trillion wiped off global bond markets in the biggest four-week selloff in the global bond markets since 2009.

The duo's difficulties encapsulate a change in narrative after months in which new-issuer premiums have been small or non-existent. Issuers are having to do more...