Liquidity turned ease balanced on Friday. Overnight repo rates inched down around 1 bp at 2.5467 percent, and 7-day repo rates dropped around 3 bps at 2.6586 percent. Yields of cash T-bonds closed down in brisk trading. 1-year T-bonds yields fell 1.5 bps at 2.97 percent; 5-year T-bonds sagged 2 bps to yield 3.48 percent; 10-year T-bonds slipped 1.75 bps to yield 3.6775 percent. Yields of financial bonds turned lower in heavy trading. 1-year bonds issued by China Development Bank shed 0.5 bps to yield 3.09 percent; 5-year bonds issued by the Bank were down 1 bp to yield 4.075 percent; and 10-year bonds lost 2.25 bps to yield 4.265 percent.

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