China started the launch of 28 billion yuan (US$3.72 billion) of book-entry treasury bonds on Thursday, the 16th batch of its kind this year, said the Ministry of Finance (MOF).

The one-year T-bonds, with a fixed annual yield of 2.95 percent, will be sold via the national inter-bank bond market, the stock market and commercial banks from Sept. 13 to 18, and will be available for trading on the stock market and over the counters of designated commercial banks from September 20.

China has issued a total of 488 billion yuan of book-entry treasury bonds this year.

China's book-entry T-bonds totaled 652.72 billion yuan in 2006, 150 billion yuan more than in 2005.

China will see a boom in bond launches this month, demonstrating the government's efforts to curb the excessive liquidity in the market.

On September 5, the MOF floated 28 billion yuan of three-month book-entry T-bonds, the 15th batch this year.

On September 10, the MOF announced it would launch a total of 200 billion yuan of special T-bonds to the public, with half to be launched in three batches in September.

(Xinhua News Agency September 14, 2007)