SHANGHAI/BEIJING (Reuters) – China will auction 100 billion yuan of special treasury bonds on Thursday, kicking off a planned 1 trillion yuan ($140.98 billion) issuance to help finance recovery from the coronavirus pandemic.

The Ministry of Finance said on Monday it will auction 50 billion yuan of five-year bonds, and 50 billion yuan of seven-year bonds.

China announced plans last month to sell 1 trillion yuan of special treasury bonds to help fund economic stimulus in the wake of the pandemic.

Its plans are being closely monitored by market participants, as when and how the bonds are sold will affect market liquidity.

Earlier on Monday, sources told Reuters that sales of the bonds will be completed by the end of July.

According to the sources, 70% of the special treasury bonds will have a 10-year term, 20% will have a maturity of five years and the remainder will be seven-year bonds.

China’s economy shrank 6.8% in the first quarter from a year earlier, the first contraction in decades, and Beijing dropped its annual growth target for the first time.

($1 = 7.0934 Chinese yuan renminbi)

(Reporting by Hongwei Li, Wu Fang, Xiangming Hou and Brenda Goh; Writing by Samuel Shen; Editing by Catherine Evans & Simon Cameron-Moore)