Market forecasts had centred around 4.25 percent and ranged from 4.20 to 4.35 percent.

The result was above Wednesday's indicative secondary market yield of 4.2089 percent bid for 1-year financial bonds issued by policy banks.

CDB also auctioned 20 billion yuan of three-year floating rate bonds at a coupon of 89 basis points over the one-year deposit rate, traders said, within market forecasts.

Traders' expectations had centred around 88 bps and ranged from 80 bps to 90 bps above the one-year deposit rate.

Copyright Reuters, 2011