China Dev Bank 5-yr FRN auction result below fcast

SHANGHAI, April 15 (Reuters) - China Development Bank auctioned 10 billion yuan ($1.47 billion) of five-year floating-rate bonds on Thursday at a coupon 8 basis points over Shanghai Interbank Offered Rates (SHIBOR), traders said, below forecasts after the release of stronger-than-expected GDP data.

The result compares with a median forecast which centred around 12 bps and ranged between 9 bps and 15 bps.

Traders expected a strong auction for the floaters because the current low interest rate environment and the possibility of rising inflation may provide room on the upside for SHIBOR, increasing returns for investors in floating rate bonds.

CDB also auctioned 20 billion yuan of 10-year fixed-rate bonds on Thursday at a yield of 3.74 percent, versus market forecasts that centred around 3.77 percent and ranged from 3.73 to 3.80 percent.

The result was below Wednesday's indicative secondary market yield of 3.7618 percent bid for 10-year financial bonds issued by policy banks, according to Reuters Reference Rates.

The government announced on Thursday that China's annual gross domestic product growth accelerated in the first quarter to 11.9 percent from 10.7 percent in the fourth quarter of 2009, higher than economists' forecasts of 11.5 percent.

($1=6.825 Yuan)

(Reporting by Tony Zhou and Karen Yeung; Editing by Edmund Klamann)

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