Liquidity eased on Tuesday. Overnight repo rates fell around 2 bps at 2.5968 percent, and 7-day repo rates rose around 5 bps at 3.0417 percent. Yields of cash T-bonds edged down in brisk trading. 1-year T-bonds yields remained unchanged at 3.65 percent; 5-year T-bonds inched down 0.5 bps to yield 3.80 percent; 10-year T-bonds were down 2 bps to yield 3.87 percent. Yields of financial bonds turned lower in heavy trading. 1-year bonds issued by China Development Bank were flat to yield 4.52 percent; 5-year bonds issued by the Bank were also flat to yield 4.72 percent; and 10-year bonds lost 2 bps to yield 4.775 percent.

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