Liquidity eased on Monday. Overnight repo rates rallied around 6 bps compared with the previous trading session to close at 2.1552 percent, and 7-day repo rates shot up around 13 bps at 2.7137 percent. Yields of cash T-bonds diverged in thinned trading. 1-year T-bonds yields remained unchanged at 2.65 percent; 5-year T-bonds inched up 1 bp to yield 2.94 percent; 10-year T-bonds were flat to yield 3.24 percent. Yields of financial bonds turned higher in steadied trading. 1-year bonds issued by China Development Bank remained unchanged to yield 3.20 percent; 5-year bonds issued by the Bank were up 1 bp to yield 3.74 percent; and 10-year bonds gained 1.5 bps to yield 3.825 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.