Liquidity tightened on Wednesday. Overnight repo rates surged around 30 bps at 2.9136 percent, and 7-day repo rates rallied around 11 bps at 3.5106 percent. Yields of cash T-bonds edged down in steadied trading. 1-year T-bonds yields remained unchanged at 3.28 percent; 5-year T-bonds inched down 0.5 bps to yield 3.70 percent; 10-year T-bonds were flat to yield 3.82 percent. Yields of financial bonds turned lower in heavy trading. 1-year bonds issued by China Development Bank remained unchanged to yield 4.18 percent; 5-year bonds issued by the Bank were flat to yield 4.75 percent; and 10-year bonds lost 0.75 bps to yield 4.9025 percent.

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