China Seeks $4 Billion in US Dollar Bonds Amid Trade Truce
China is moving to raise $4 billion through a two-tranche US dollar bond, marking its largest dollar-denominated issuance in over four years. The order book has surged to $65 billion, with initial price guidance set at 25 basis points for a three-year bond and 30 basis points for a five-year tranche. This follows last year's $2 billion bond issuance to Saudi Arabia and comes just weeks after the Beijing-Washington trade truce.
While China has cut retaliatory tariffs on some US goods to 13%, soybeans remain a strategic pressure point. The retention of soybean tariffs keeps American farmers at a disadvantage, maintaining leverage over the Trump administration. As the world's top agricultural buyer, China's procurement decisions continue to Ripple through global markets.
