Yields on New China Dollar Bonds Fall Below Treasuries in Debut

China just borrowed dollars in global credit markets at essentially the same cost as the US, and traders immediately drove the yields on the bonds down even further.

The nation raised $2 billion in a sale of three- and five-year notes. The securities were priced to yield just one and three basis points over similar-maturity Treasuries, respectively. Then once trading kicked off Thursday, spreads tightened to about 24 and 25 basis points under Treasuries, traders said.