The Ministry of Finance has announced plans for the first re-issuance of the 2026 ultra-long special treasury bonds (sixth tranche) on September 2nd. This re-issuance involves 30-year fixed-rate coupon bonds with a coupon rate of 2.14%, matching the rate of previously issued bonds of the same maturity, with a competitive bidding face value totaling 73 billion yuan. This marks the first ultra-long special treasury bond issuance scheduled for September.
Data compiled from the year's ultra-long special treasury bond issuance shows that cumulative issuance has reached 972 billion yuan, representing 75% of the annual quota. Following the upcoming bond sale, the total issued amount will climb to 1,045 billion yuan, pushing the issuance progress against the full-year target of 1.3 trillion yuan to approximately 80%.
The current pace and implementation status of ultra-long special treasury bond issuance reflect precise macro-policy efforts to support economic stability, according to Yuan Shuai, deputy secretary-general of the Zhongguancun Internet of Things Industry Alliance. The market-oriented issuance arrangement smoothly aligns with long-term institutional capital while maintaining ample funding reserves for key projects, ensuring continuity and smoothness throughout the funding chain.
Looking at the maturity structure, among the ultra-long special treasury bonds issued this year to date, there have been five tranches of 20-year bonds totaling 156 billion yuan, nine tranches of 30-year bonds amounting to 731 billion yuan, and two tranches of 50-year bonds reaching 85 billion yuan.
Song Xiangqing, vice president of the China Commercial Economics Association, noted that the ultra-long maturities of these bonds enable financing of large-scale, long-cycle major projects and industrial upgrading initiatives at relatively low long-term funding costs. On one hand, this meets the investment needs of long-term allocators and stabilizes bond market expectations; on the other, the staggered issuance of bond tranches smooths supply-side impacts and avoids market disruptions from concentrated releases.
The overall issuance schedule balances growth-stabilization objectives with orderly market operations, demonstrating increasingly mature and refined use of the policy toolkit. Meanwhile, funds from ultra-long special treasury bonds are being distributed in an orderly manner alongside ongoing issuance. Specifically, the 800 billion yuan allocated for major national strategies and security capacity building has been fully disbursed, supporting the construction of 1,417 key projects in priority areas. Additionally, 200 billion yuan dedicated to equipment renewal and consumer goods trade-ins has also been fully allocated, backing approximately 11,000 projects across 22 sectors, providing strong support for accelerating industrial upgrading, promoting green development, improving people's livelihoods, and strengthening security safeguards.
The accelerated deployment of ultra-long special treasury bond funds creates multi-layered support across both investment and industrial dimensions, Song explained. For instance, the 800 billion yuan directed toward major strategies, infrastructure, and security capacity building directly stimulates infrastructure investment, addressing gaps in urban pipelines, water conservancy, transportation, and ecological protection while expanding effective investment and stabilizing the employment base. As projects commence construction, treasury bond funds will also generate leverage effects, guiding bank credit and private capital to follow suit, thereby establishing a transmission chain from fiscal investment to tangible economic output and reinforcing the fundamental support for economic recovery in the second half of the year.
From a policy transmission perspective, the current issuance progress has created a well-matched state where funds align with project needs, according to Yuan. This steady issuance and utilization rhythm conveys clear pro-growth signals to the market, effectively stabilizing expectations among economic participants, establishing a policy safety net for fourth-quarter economic performance, and enabling the policy effectiveness of ultra-long special treasury bonds to continue releasing over an extended period.