BEIJING - China issued bonds worth 40.8 trillion yuan ($6.38 trillion) last year, up 12.9 percent year-on-year, the central bank said Friday.

Treasury bond issuance increased by 1 trillion yuan to reach 3.9 trillion yuan last year, according to the report released by the People's Bank of China.

Local government bond issuance slowed in 2017 to 4.4 trillion yuan, compared with the 6 trillion yuan issued in 2016.

A number of regulations were introduced last year to rein in financial risks with mounting local government debt.

The inter-bank bond market saw an increase in players as well as issuance last year, the report showed.

Bond transaction volume shrank in the past year, while the average yield curve moved upward, according to the report.