Liquidity eased on Tuesday. Overnight repo rates inched down around 1 bp at 2.8685 percent, and 7-day repo rates fell around 3 bps at 3.2798 percent. Yields of cash T-bonds diverged in brisk trading. 1-year T-bonds yields remained unchanged at 3.615 percent; 5-year T-bonds rose 1.5 bps to yield 3.575 percent; 10-year T-bonds dropped 0.5 bps to yield 3.575 percent. Yields of financial bonds turned lower in heavy trading. 1-year bonds issued by China Development Bank were flat to yield 4.12 percent; 5-year bonds issued by the Bank slipped 1.5 bps to yield 4.245 percent; and 10-year bonds lost 1.5 bps to yield 4.255 percent.

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