China will issue 38.38 billion yuan of book-entry treasury bonds, the Ministry of Finance (MOF) said in a statement on Friday.

The three-year T-bonds with an annual interest rate of 3.53 percent due to mature on July 16, 2010 will be on sale from July 16 to 19 in authorized banks and local stock markets.

This is the 11th batch of book-entry T-bonds to be issued by the MOF this year. China issued book-entry treasury bonds totaling 652.7 billion yuan in 2006, 150 billion yuan more than the 2005 figure.

The Chinese government pledged earlier 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.

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