Liquidity tightened on Thursday. Overnight repo rates surged around 17 bps compared with the previous trading session to close at 2.4847 percent, and 7-day repo rates jumped around 43 bps to yield 3.3606 percent. Yields of cash T-bonds edged up in brisk trading. 1-year T-bonds yields shot up 25 bps at 2.90 percent; 5-year T-bonds advanced 15 bps to yield 3.12 percent; 10-year T-bonds firmed 13 bps to yield 3.36 percent. Yields of financial bonds turned higher in heavy trading. 1-year bonds issued by China Development Bank rallied 60 bps to yield 3.85 percent; 5-year bonds issued by the Bank increased 24 bps to yield 3.94 percent; and 10-year bonds gained 20 bps to yield 3.90 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.