Liquidity eased on Friday. Overnight repo rates fell 4 bps at 2.5841 percent, and 7-day repo rates dropped 5 bps at 3.3988 percent. Yields of cash T-bonds diverged in steadied trading. 1-year T-bonds yields remained unchanged at 3.45 percent; 5-year T-bonds were flat to yield 3.65 percent; 10-year T-bonds were also flat to yield 3.65 percent. Yields of financial bonds were mixed in heavy trading. 1-year bonds issued by China Development Bank rose 2 bps to yield 4.10 percent; 5-year bonds issued by the Bank increased 2 bps to yield 4.370 percent; and 10-year bonds gained 0.25 bps to yield 4.3600 percent. (The update will suspend publishing during the Dragon Boat Festival. The issue on May 31 will introduce the market in the previous trading session.)

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.