Liquidity tightened on Tuesday. Overnight repo rates surged 27 bps compared with the previous trading session to close at 2.7466 percent, and 7-day repo rates jumped around 65 bps at 3.7195 percent. Yields of cash T-bonds diverged in brisk trading. 1-year T-bonds yields remained unchanged at 2.70 percent; 5-year T-bonds inched down 0.5 bps to yield 2.995 percent; 10-year T-bonds were flat to yield 3.29 percent. Yields of financial bonds were mixed in heavy trading. 1-year bonds issued by China Development Bank remained unchanged to yield 3.30 percent; 5-year bonds issued by the Bank added 1 bp to yield 3.96 percent; and 10-year bonds gained 0.5 bps to yield 4.0675 percent.

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