Liquidity eased on Sunday with interest rates slightly down. China’s central bank repurchased RMB 40 billion in open market in 7 days and RMB 20 million in 14 days with repo rate unchanged at 2.25 percent and 2.40 percent respectively. No repo bonds was expired. A net RMB 60 billion was injected into the market on Sunday. No non-financial corporate debt financing tools were issued in tier-1 market. Trading was light in tier-2 credit bond market. Yields of short-term financing bonds were little changed in light trading. Yields of AAA one-year credit bonds were flat at 2.94 percent. Yields of 16 JNCEC SCP002 that will expire in 43 days closed at 2.76 percent. Yields of medium-term bill market were hardly moved in light trading. Yields of AAA three-year bonds fell 2 bps at 2.94 percent. Yields of AAA five-year bonds dropped 4 bps at 3.05 percent. Yields of 16 Railway MTN002 that will expire in 4.66 years closed at 2.99 percent. Yields of corporate bonds were hardly changed in thinned trading.

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