China local government bonds enter to the normal, largescale release stage from 2015, the pricing of LGBs need to be studied. This paper constructs the local economic structure, mechanism of government debt risk profile and local government bond issuance rates. By using the data of local government bonds of the 34 provincial municipalities, the empirical research focuses on the local government bond interest rates spread over the treasury, with economic structure of the issuer, the government debt ratio, and the bond market capital supply and other features. Quantitative analysis show that the relation of local government bond rates spread, with the investment ratio, local government debt rate is positive significantly. However, as the regional economic heterogeneity, the relation among local government bonds issue spreads with the invest ratio within western region, and the debt ratio within northeastern region, is significant negative. Issue of oriented underwriting increase the local government bond spreads significantly, but the relationship between spreads and Shibor is no significant. Accordingly, we propose policy advice of reduce the cost of local government bonds, is to accelerate regional development, increase local government bond liquidity, and bond volume.