Liquidity eased on Friday. Overnight repo rates fell around 13 bps at 2.7246 percent, and 7-day repo rates dropped around 17 bps at 3.0387 percent. Yields of cash T-bonds diverged in brisk trading. 1-year T-bonds yields decreased 2 bps at 3.37 percent; 5-year T-bonds declined 0.25 bps to yield 3.56 percent; 10-year T-bonds remained unchanged to yield 3.625 percent. Yields of financial bonds were mixed in heavy trading. 1-year bonds issued by China Development Bank sagged 1 bp to yield 3.68 percent; 5-year bonds issued by the Bank firmed 0.25 bps to yield 4.1525 percent; and 10-year bonds gained 0.9 bps to yield 4.249 percent.

Disclaimer: This research report is prepared by the Industrial and Commercial Bank of China Limited ("ICBC") based on public information. Facts and views expressed in the report do not reflect the official opinion of ICBC. ICBC makes every effort to use reliable information, but makes no representation that the information is accurate or complete. ICBC bears no responsibility or liability for any direct or indirect loss arising out of (or claimed to be arising out of) using or reliance upon such information. ICBC owns the copyright of this report. This report may not be reproduced, copied, published, distributed or quoted in any way without the express written consent of ICBC. ICBC reserves the right to investigate and prosecute violations of copyright infringement to the fullest extent of the law.