China sells $6 billion worth of dollar bonds, double official target

LONDON (Reuters) - China sold $6 billion worth of dollar-denominated bonds on Tuesday, double its initial target.

The country’s finance ministry sold the bonds in four tranches. A 3-year issue priced 35 basis points above benchmark U.S. Treasuries, a 5-year bond at 40 bps above treasuries, a 10-year at 50 bps above Treasuries and a 20-year tranche at 70 bps above Treasuries, a source at one of the managing banks said.

The deal comes after a market rally this year that has driven global bond yields sharply lower, significantly decreasing the cost of financing compared with its previous dollar issuance in October 2018.

Order books -- or demand -- for the bonds had been over $20 billion earlier in the day, according to Refinitiv capital markets news service IFR. Thirteen banks had been mandated to lead the issue

Reporting by Marc Jones in London and Noah Sin in Hong Kong; editing by Sujata Rao