Liquidity tightened on Tuesday. Overnight repo rates inched up around 1 bp compared with the previous trading session to close at 2.4615 percent, and 7-day repo rates jumped around 34 bps at 3.1686 percent. Yields of cash T-bonds were little changed in steadied trading. 1-year T-bonds yields remained unchanged at 2.79 percent; 5-year T-bonds were flat to yield 3.04 percent; 10-year T-bonds were also flat to yield 3.355 percent. Yields of financial bonds turned higher in heavy trading. 1-year bonds issued by China Development Bank rose 1 bp to yield 3.35 percent; 5-year bonds issued by the Bank were up 1 bp to yield 4.04 percent; and 10-year bonds were also flat to yield 4.165 percent.

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