Liquidity tightened on Monday. Overnight repo rates inched up around 0.3 bps at 2.9635 percent, and 7-day repo rates surged around 29 bps at 3.4973 percent. Yields of cash T-bonds edged up in steadied trading. 1-year T-bonds yields rose 1.5 bps at 3.485 percent; 5-year T-bonds increased 4 bps to yield 3.635 percent; 10-year T-bonds added 3.75 bps to yield 3.65 percent. Yields of financial bonds turned higher in stable trading. 1-year bonds issued by China Development Bank climbed 2 bps to yield 3.98 percent; 5-year bonds issued by the Bank firmed 3.5 bps to yield 4.275 percent; and 10-year bonds gained 3 bps to yield 4.22 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.