China will issue 50 billion yuan of treasury bond and the new T-bonds will be sold to the public from March 1 to April 20 at major banks and postal savings offices nationwide, the Ministry of Finance said on February 25.

Of the 50 billion yuan of bonds, ten billion has a maturity of two years and an annual interest rate of 2.55 percent, 35 billion has a maturity of three years and an interest rate of 2.89 percent and the rest five billion yuan has a maturity of five years and an interest rate of 3.14 percent.

The T-bonds are certificate bonds which can be hypothecated for bank loans, but they cannot be put into circulation and nor can it be transferred. Both the interest and the principal will be paid in a lump sum when the maturity is due. A two percent commission charge on the principal is required if the investors want their money earlier.

Once purchased, the T-bonds cannot be resold but can be used as security for bank loans.

According to the Ministry of Finance, interest rates of T-bonds will be readjusted according to related deposit interests during the issuance period if there are changes in deposit interest rates.