(Bloomberg) -- China funds accepted the lowest yields in at least a decade and a half in an auction of long-tenor government bonds, shrugging off Moody’s Investors Service decision to cut the country’s credit outlook.

The average yield for 30-year government bonds sold by the Ministry of Finance was 2.9406%, the lowest since at least 2007, data compiled by Bloomberg showed.

Friday’s auction result shows domestic investors continue to hold a positive stance toward China’s debt even after the ratings agency this week announced a negative outlook for the world’s second-largest economy. 

The marginal bid-to-cover ratio was 1.04, the lowest in more than a year. The issuance amount reached 23 billion yuan ($3.2 billion), the same as the previous batch. 

“Insurers’ demand for long-tenure bonds is still very strong as they have asset-allocation needs,” said Zhou Guannan, fixed-income analyst at Huachuang Securities Co. The brokerage expects the demand from insurers to remain robust.

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