China 20-year bond auction yield below forecast

China's Ministry of Finance on Wednesday auctioned 28 billion yuan ($3.7 billion) of 20-year bonds at 4.52 percent, traders said, below market expectations of between 4.60 and 4.70 percent.

Traders and analysts had said before the auction that demand for the bonds was likely to be relatively weak after Monday's consumer price data, which showed July inflation jumping to 5.6 percent, the highest rate in more than a decade.

The indicative 20-year government bond yield in the secondary market rose to 4.6509 percent bid on Tuesday from 4.6400 percent on Monday, according to Reuters Reference Rates. Wednesday's indicative yields will be known later in the day. ($1=7.58 yuan)