China's special long-term bonds rise in exchange debut

SHANGHAI -- The first batch of China's 1 trillion yuan ($140 billion) worth of ultra-long-term treasury bonds rose as they debuted on local exchanges on Wednesday, as investors flocked to government-backed securities perceived as low-risk.

The Ministry of Finance kicked off its special government bond sale last Friday, issuing 40 billion yuan ($5.6 billion) of 30-year bonds with an interest rate of 2.57% per year. The Shanghai-listed bonds jumped 25% shortly after they began trading on Wednesday morning, triggering temporary suspensions. The Shenzhen-listed notes were also suspended from trading after rising more than 20%. Some of the gains were pared back after the stoppages were lifted in the afternoon.