Liquidity remained tight balance on Thursday. Overnight repo rates fell around 1 bp compared with the previous trading session to close at 2.4307 percent, and 7-day repo rates tumbled around 10 bps at 2.8677 percent. Yields of cash T-bonds diverged in brisk trading. 1-year T-bonds yields rose 0.5 bps at 2.815 percent; 5-year T-bonds remained unchanged to yield 3.13 percent; 10-year T-bonds were flat to yield 3.41 percent. Yields of financial bonds turned higher in heavy trading. 1-year bonds issued by China Development Bank remained unchanged to yield 3.37 percent; 5-year bonds issued by the Bank were up 1 bp to yield 4.11 percent; and 10-year bonds gained 0.5 bps to yield 4.21 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.