Liquidity eased on Friday. Overnight repo rates fell around 10 bps at 2.8485 percent, and 7-day repo rates tumbled around 20 bps at 3.4754 percent. Yields of cash T-bonds edged down in brisk trading. 1-year T-bonds yields remained unchanged at 3.48 percent; 5-year T-bonds were down 3 bps to yield 3.61 percent; 10-year T-bonds fell 2 bps to yield 3.615 percent. Yields of financial bonds turned lower in heavy trading. 1-year bonds issued by China Development Bank were flat to yield 3.92 percent; 5-year bonds issued by the Bank dropped 2.25 bps to yield 4.2575 percent; and 10-year bonds lost 2.25 bps to yield 4.21 percent.

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