Liquidity tightened on Monday. Overnight repo rates rallied around 10 bps compared with the previous trading session to close at 2.2007 percent, and 7-day repo rates surged around 20 bps at 2.5842 percent. Yields of cash T-bonds diverged in hefty trading. 1-year T-bonds yields slipped 3 bps at 2.70 percent; 5-year T-bonds added 3 bps to yield 2.96 percent; 10-year T-bonds climbed 7 bps to yield 3.26 percent. Yields of financial bonds were turned higher in brisk trading. 1-year bonds issued by China Development Bank advanced 5 bps to yield 3.25 percent; 5-year bonds issued by the Bank were up 7 bps to yield 3.72 percent; and 10-year bonds gained 7.5 bps to yield 3.805 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.