Liquidity tightened on Friday. Overnight repo rates rallied around 10 bps compared with the previous trading session to close at 2.3970 percent, and 7-day repo rates picked up around 7 bps to yield 2.9090 percent. Yields of cash T-bonds edged down in brisk trading. 1-year T-bonds yields remained unchanged at 2.13 percent; 5-year T-bonds slipped 1.5 bps to yield 2.38 percent; 10-year T-bonds dropped 0.5 bps to yield 2.64 percent. Yields of financial bonds turned higher 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 up 1 bp to yield 2.845 percent; and 10-year bonds gained 0.25 bps to yield 3.0175 percent.

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