The 2005 evidence treasury bonds (fourth phase), worth a total of RMB 30 billion, will start to be issued nationwide on August 1, including RMB 24.5 billion of three-year term and RMB10.5 billion of five-year term with an interest rate of 3.24% and 3.6% respectively. CCB will underwrite RMB4.2 billion during this phase and sell them in two months, i.e. RMB 2.1 billion in August and RMB 2.1 billion in September, and the proportion of bonds with three-year term to those with five-year term is 7 to 3.

According to experts of CCB, compared with the evidence treasury bonds issued in the first half of this year, the interest rates of the fourth phase of bonds were lowered by 0.13% and 0.21% respectively and stand at the same level with those of saving deposits with the same term. Since investors need not pay tax for treasury bonds, the real yields of this phase of treasury bonds are still 20% higher over savings deposits with the same term. Among the investment products currently available on the market, evidence treasury bonds, which have stable yield and can be bought conveniently and cashed in advance, remain the favorite choice of investors.