Liquidity tightened on Thursday. Overnight repo rates rose around 7 bps at 2.8082 percent, and 7-day repo rates surged around 17 bps at 3.74 percent. Yields of cash T-bonds edged down in brisk trading. 1-year T-bonds yields remained unchanged at 3.50 percent; 5-year T-bonds fell 1.75 bps to yield 3.7525 percent; 10-year T-bonds inched down 1 bp to yield 3.7725 percent. Yields of financial bonds turned lower in heavy trading. 1-year bonds issued by China Development Bank were flat to yield 3.98 percent; 5-year bonds issued by the Bank were down 2 bps to yield 4.415 percent; and 10-year bonds lost 2.25 bps to yield 4.3575 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.