(Bloomberg) -- China’s second batch of ultra-long special government bond issuance this year received solid demand, as investors chased safe-haven assets amid mounting pessimism on the economy. 

The 40-billion-yuan ($5.5 billion) sale, the first 20-year issuance of any type since 2015, was priced at 2.49% on Friday, according to traders who asked not to be identified. The issuance drew bids that were more than four times the planned auction amount, a sign of strong appetite for the debt. 

The auction is part of China’s 1 trillion yuan special sovereign notes issuance for 2024. Investors are snapping up these securities on bets the nation needs to ease monetary policy further to support the economy — a move that would drive yields lower.

The latest economic data from China showed that its credit demand was collapsing and home prices extended a slump in April. That had prompted the authorities to ramp up supportive measures, including quickening fund raising and spending via the special bonds.

The buying spree even got speculative in a less liquid market, where retail investors on Wednesday drove up the prices of a 30-year note by as much as 25% and trading of the bonds was halted. The next day, state media urged retail investors to be more rational in purchasing.

The traders asked to remain unnamed as they aren’t authorized to speak publicly.

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