Liquidity turned balanced on Friday. Overnight repo rates rallied around 8 bps at 2.6254 percent, and 7-day repo rates surged around 16 bps at 2.7039 percent. Yields of cash T-bonds edged up in brisk trading. 1-year T-bonds yields rose 5 bps at 2.85 percent; 5-year T-bonds added 2 bps to yield 3.35 percent; 10-year T-bonds climbed 2.5 bps to yield 3.64 percent. Yields of financial bonds closed higher in heavy trading. 1-year bonds issued by China Development Bank firmed 10 bps to yield 3.14 percent; 5-year bonds issued by the Bank were up 7 bps to yield 3.98 percent; and 10-year bonds gained 3 bps to yield 4.2675 percent.

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