China’s treasury bond issuance in 2021 will be similar to this year’s, if no special anti-virus bonds are sold, two sources briefed on the government’s plans said, suggesting a tighter fiscal policy since more bonds are due to mature next year. China’s economy has been recovering in recent months from a pandemic-induced slump, pointing to a likely adjustment in policy. China has issued roughly 7 trillion yuan ($1.07 trillion) worth of treasury bonds this year, including 1 trillion yuan of anti-virus bonds dedicated to fighting the effects of COVID-19. A similar amount of bond issuance next year would mean lower net financing, as about 3.4 trillion yuan worth of Chinese treasury bonds will mature in 2021, up from 2.96 trillion yuan this year. The sources, who attended a recent meeting held by China’s ministry of finance, also said issuance of treasury bonds with key tenors would be somewhere between 50 billion and 75 billion yuan for each tranche next year. At China’s annual Central Economic Work Conference this month, top leaders said the country would keep its proactive fiscal policy and make monetary policy flexible and targeted. Beijing is likely to reduce its fiscal stimulus next year and cut its 2021 budget deficit to about 3% of GDP from a target of at least 3.6% this year, sources told Reuters. China is the only major economy on track to post growth this year, with forecasts indicating a more than 2% rise in annual gross domestic product. GDP growth is expected to accelerate to 8-9% in 2021.