Liquidity tightened a little bit on Tuesday. Overnight repo rates rose 2 bps compared with the previous trading session to close at 2.2860 percent, and 7-day repo rates rallied 4 bps to yield 2.6508 percent. Yields of cash T-bonds edged up in steadied trading. 1-year T-bonds yields added 3 bps at 2.58 percent; 5-year T-bonds remained unchanged to yield 2.90 percent; 10-year T-bonds firmed 2 bps to yield 3.18 percent. Yields of financial bonds turned higher in heavy trading. 1-year bonds issued by China Development Bank were flat to yield 3.15 percent; 5-year bonds issued by the Bank increased 3 bps to yield 3.57 percent; and 10-year bonds gained 0.5 bps to yield 3.575 percent.

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