Liquidity loosened on Friday. Overnight repo rates inched down around 0.90 bps at 2.6250 percent, and 7-day repo rates tumbled around 16 bps at 3.0330 percent. Yields of cash T-bonds edged down in brisk trading. 1-year T-bonds yields remained unchanged at 3.18 percent; 5-year T-bonds slid 2 bps to yield 3.45 percent; 10-year T-bonds decreased 2 bps to yield 3.60 percent. Yields of financial bonds ended lower in heavy trading. 1-year bonds issued by China Development Bank were flat to yield 3.93 percent; 5-year bonds issued by the Bank retreated 3 bps to yield 4.30 percent; and 10-year bonds lost 2.5 bps to yield 4.3825 percent.

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