Liquidity remained balanced on Thursday. Overnight repo rates fell around 9 bps at 2.4593 percent, and 7-day repo rates dropped around 15 bps at 2.5782 percent. Yields of cash T-bonds diverged in brisk trading. 1-year T-bonds yields slipped 0.5 bps at 2.90 percent; 5-year T-bonds retreated 5 bps to yield 3.28 percent; 10-year T-bonds rose 1.5 bps to yield 3.62 percent. Yields of financial bonds closed lower in heavy trading. 1-year bonds issued by China Development Bank slid 16 bps to yield 3.00 percent; 5-year bonds issued by the Bank were down 5.5 bps to yield 3.905 percent; and 10-year bonds lost 1.5 bps to yield 4.18 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.