China’s central bank repurchased RMB 30 billion and RMB 30 billion in open market in 14 days and 28 days on Sunday with repo rate unchanged at 2.40 percent and 2.55 percent respectively. No repo bonds was expired. A net of RMB 60 billion was injected into the market. Liquidity remained loose with fund rates rising sharply. Issuance in tier-1 market increased, but market response was lackluster. In tier-1 market, there issued 6 ultra-short financing bonds, including RMB 2 billion of AAA 90-day 17 SJT SCP001, RMB 1 billion of AAA 180-day 17 YK SCP002, RMB 3 billion of AAA 60-day 17 ZHG SCP001, RMB 600 million of AA+ 270-day 17 HJT SCP001, RMB 1 billion of AA+ 270-day 17 ZDXM SCP001, and RMB 600 million of AA+ 60-day 17 JY SCP001; 4 short-term financing bonds, including RMB 1 billion of AA+ 1-year 17 NK CP001, RMB 400 million of AA 1-year 17 ZYF CP001, RMB 3 million of AA 1-year 17 BHYT CP001, RMB 500 million of AA 1-year 17 CHSW CP001; 4 medium-term bills, including RMB 2.5 billion of AAA 5-year 17 DLG MTN001, RMB 2 billion of AAA 3-year 17 JM MTN001, RMB 100 million of AA- 3-year 17 ZNJS MTN001, RMB 600 million of AA 3-year 17 HTGK MTN001. Trading was light in tier-2 market. Yields of short-term financing bonds were little changed in thinned trading. Yields of AAA 1-year credit bonds remained unchanged at 3.87 percent with no big deal traded. Yields of medium-term bill market were little changed in lukewarm trading. Yields of AAA 3-year bonds remained unchanged at 4.05 percent. Yields of AAA 5-year bonds were flat at 4.05 percent with no big deal stricken. Yields of corporate bonds were hardly moved in lackluster trading.

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