Liquidity eased on Friday. Overnight repo rates fell around 9 bps compared with the previous trading session to close at 2.1348 percent, and 7-day repo rates slid around 2 bps to yield 2.4263 percent. Yields of cash T-bonds edged down in thinned trading. 1-year T-bonds yields inched down 0.2 bps at 2.148 percent; 5-year T-bonds slipped 0.5 bps to yield 2.435 percent; 10-year T-bonds dropped 0.25 bps to yield 2.725 percent. Yields of financial bonds diverged in heavy trading. 1-year bonds issued by China Development Bank were flat to yield 2.40 percent; 5-year bonds issued by the Bank was down 0.2 bps to yield 2.933 percent; and 10-year bonds gained 0.5 bps to yield 3.09 percent.

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