Liquidity tightened on Monday. Overnight repo rates fell around 12 bps at 2.9725 percent, and 7-day repo rates rallied around 10 bps at 3.6818 percent. Yields of cash T-bonds diverged in brisk trading. 1-year T-bonds yields remained unchanged at 3.48 percent; 5-year T-bonds were up 2.75 bps to yield 3.6225 percent; 10-year T-bonds rose 1.75 bps to yield 3.62 percent. Yields of financial bonds turned higher in heavy trading. 1-year bonds issued by China Development Bank were flat to yield 3.92 percent; 5-year bonds issued by the Bank added 2.5 bps to yield 4.27 percent; and 10-year bonds gained 1.75 bps to yield 4.2275 percent.

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