Gansu bags LGFV bond after Trump's stunning victory

Market turbulence resulting from Trump's surprise victory fails to knock Chinese local government financing vehicle off course as it attracts $2 billion in demand for debut US dollar bond.

Gansu Provincial Highway Aviation Tourism Investment Group, a BBB-BBB- rated local government financing vehicle LGFV, raised $500 million from a maiden international bond sale on Thursday, braving uncertain bond markets in the wake of  Donald Trump's surprise victory over Hillary Clinton in the US presidential election.

The Reg S three-year bullet trade came to market in the wake of a sharp drop in US Treasury yields, which sent 10-year yields above 2% for the first time in nine months on expectations the president-elect will significantly increase the fiscal deficit and debt burden in coming years.

It was a fear trade in...

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