(March 23): China’s US$18 trillion bond market has proved remarkably stable in the face of rising yields around the world. A flood of issuance from the country’s local governments from April is about to put that resilience to the test.

Regional authorities are expected to expedite sales of new special local debt, just as short-term loans and corporate tax submissions are due. The brunt of the pressure -- with a record 7.1 trillion yuan (US$1.1 trillion) of such debt expected this year according to official figures and data compiled by Bloomberg -- will fall on Chinese banks, asked to ensure growth while facing calls to cut leverage.