Overnight liquidity eased, but cross-year capital remained tightened on Tuesday. Overnight repo rates rallied around 5 bps at 2.6332 percent, and 7-day repo rates surged around 103 bps at 4.5459 percent. Yields of cash T-bonds diverged in steadied trading. 1-year T-bonds yields remained unchanged at 3.795 percent; 5-year T-bonds were flat to yield 3.83 percent; 10-year T-bonds were also flat to yield 3.88 percent. Yields of financial bonds turned higher in stable trading. 1-year bonds issued by China Development Bank were flat to yield 4.68 percent; 5-year bonds issued by the Bank climbed 0.5 bps to yield 4.8 percent; and 10-year bonds gained 3.25 bps to yield 4.8625 percent.

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