Liquidity tightened on Tuesday. Overnight repo rates rallied around 11 bps compared with the previous trading session to close at 2.3068 percent, and 7-day repo rates surged around 28 bps to yield 2.7347 percent. Yields of longer-term cash T-bonds were mixed in steadied trading. 1-year T-bonds yields remained unchanged at 2.145 percent; 5-year T-bonds slipped 1 bp to yield 2.44 percent; 10-year T-bonds inched up 0.25 bps to yield 2.6925 percent. Yields of financial bonds were little changed in heavy trading. 1-year bonds issued by China Development Bank were flat to yield 2.38 percent; 5-year bonds issued by the Bank were also flat to yield 2.86 percent; and 10-year bonds gained 0.25 bps to yield 3.0325 percent.

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