(Yicai Global) Aug. 28 -- China Foreign Exchange Trade System & National Interbank Funding Centre (CFETS), a subsidiary of the People's Bank of China plans intends to carry out its first Treasury bond pre-issuance in the inter-bank bond market, the institution said in a press briefing on Aug. 28.
The pre-issuance of treasury bonds is a bond trading based on the future issuance of Treasury bonds. The pre-issuance of treasury bonds trading take place between four and one working day before bidding occurs through physical settlement. CFETS provides quotation, transaction, information and other services for participants in pre-issuance trading. Trading methods include bilateral inquiries, request-for-quotes, click-and-deals and limit price trading.
Existing inter-bank bond market members are able to participate in trading related to pre-issuance of Treasury bonds. CFETS will issue an announcement to the market five working days before the bidding for the underlying bonds.