Liquidity tightened on Wednesday. Overnight repo rates rallied around 12 bps at 2.7493 percent, and 7-day repo rates surged around 50 bps at 5.0432 percent. Yields of cash T-bonds edged up in steadied trading. 1-year T-bonds yields remained unchanged at 3.795 percent; 5-year T-bonds inched up 0.5 bps to yield 3.835 percent; 10-year T-bonds rose 1.5 bps to yield 3.895 percent. Yields of financial bonds diverged in stable trading. 1-year bonds issued by China Development Bank were flat to yield 4.68 percent; 5-year bonds issued by the Bank were also flat to yield 4.8 percent; and 10-year bonds lost 0.25 bps to yield 4.86 percent.

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