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China will issue 30 billion yuan of book-entry treasury bonds, the Ministry of Finance (MOF) said in a statement on Wednesday.

The three-month T-bonds carry an annual interest rate of 2.34 percent and will be sold via the national inter-bank bond market and stock markets between June 7 and June 11, and will be repaid on September 7.

This is the eighth batch of book-entry T-bonds to be issued by the MOF this year. China issued book-entry treasury bonds totaling 652.72 billion yuan in 2006, 150 billion yuan more than the 2005 figure.

The Chinese government pledged earlier this year to cut the issuance of treasury bonds in 2007 by a "modest" amount in a bid to reduce its financial deficit and expand channels for direct financing. (one U.S. dollar is equal to 7.64 yuan)