China Bond Sales Slow From Peak, Easing Liquidity Concerns (1)

Fresh borrowing by Chinese authorities slowed from a multi-year high in November, helping alleviate concerns it would drain cash from the system to a degree could challenge a bumpy economic recovery.

China’s central and local governments raised a total of 1.95 trillion yuan ($273 billion) through bond sales in November, according to Bloomberg calculations based on official data. That was about a quarter less than the amount raised in October and the smallest issuance in four months.

The decline is welcoming news to money-market traders, who in late October were spooked by a cash squeeze and subsequent surge in overnight ...