Liquidity remained loose balanced on Friday. Overnight repo rates rose around 4 bps at 2.3199 percent, and 7-day repo rates dropped around 8 bps at 2.6339 percent. Yields of cash T-bonds edged down in brisk trading. 1-year T-bonds yields remained unchanged at 2.83 percent; 5-year T-bonds retreated 3.5 bps to yield 3.33 percent; 10-year T-bonds were flat to yield 3.585 percent. Yields of financial bonds closed slightly lower in heavy trading. 1-year bonds issued by China Development Bank slipped 1 bp to yield 3.08 percent; 5-year bonds issued by the Bank were down 0.5 bps to yield 3.92 percent; and 10-year bonds lost 0.5 bps to yield 4.185 percent.

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