(Bloomberg) -- China raised $4 billion in its return to the international bond market on Wednesday, testing investor appetite as trade frictions with the U.S. have eased.

The Ministry of Finance sold $2 billion each of three- and five-year dollar notes, with no premium versus Treasuries for the former and just two basis points for the latter, according to a person familiar with the matter who requested anonymity discussing private matters. Order books topped $118.15 billion from 1,048 accounts.

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Proceeds from the sale will go toward general government purposes.

Beijing’s typically annual sale of dollar bonds comes as US-China tensions have de-escalated, following a key summit that led to an extended tariff truce. Authorities aim to use the latest issuance to further develop a deeper yield curve that can serve as a pricing benchmark for Chinese companies.

“This is just the MoF helping improve the pricing/liquidity of Chinese names in the USD bond market by issuing benchmark bonds regularly,” said Serena Zhou, senior China economist at Mizuho Securities.

Wednesday’s sale comes amid a steady rebound in dollar-note sales by Chinese firms, after the country’s unprecedented property crisis and the Federal Reserve’s interest-rate hikes triggered an issuance slump. There’s been about $90 billion of publicly-announced sales in 2025, heading toward a three-year high, according to data compiled by Bloomberg.

The finance ministry almost exactly a year ago sold $2 billion of three- and five-year bonds at slight premiums to Treasuries amid strong demand largely from Chinese investors seeking higher returns in overseas markets.

S&P Global Ratings assigned an A+ long-term foreign-currency issue rating to China’s latest dollar-bond offering.

--With assistance from Kari Lindberg.

(Updates with bookstats.)

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