As the end of September of 2021，the existing of local government bonds of Yunnan Province is at a mid-to-high level among all provinces in the country. Local government bond issuance has accelerated since 2020，while the pace of issuance has slowed down in the first three quarters of 2021，and the importance of debt risk control is becoming increasingly prominent. This report firstly introduces the present situation of the local bonds market in Yunnan；then，it analyzes the use of project income special bond funds and the effect of pulling regional investment in detail；finally analyzes the regional debt risk based on the overall situation and fiscal performance of Yunnan’s local bonds. And put forward suggestions on the next stage of development of the local bonds market in Yunnan.