(1)ChinaBond Index Analysis
ChinaBond Composite Index tracking general performance of bond marketdropped today. The net price index excluding interest revenue declined by0.0355%; and the total return index including interest reinvested revenuedeclined by 0.0229%. In addition, the average yield to maturity was 4.5174%.The average market capitalization yield was 4.5164%. And the market valueweighted duration was 3.838.
(2)Bond Market Performance:
Rate Securities
Generally speaking, the yields of Treasury Bonds and Policy Bank Bonds addedslightly. In the morning, the auction outcome of EXMCH Bonds on 3M waved, and 50Ydecreased moderately. By the end of day, the yields of Treasury Bonds went downwithin 3BPs, while the yield of CDB, EXMCH and ADBC Bonds waved within 2BPs.
To be more specific, 3Y Treasury Bonds increased 2BPs to 3.69% resultedfrom the transaction of 170008; 5Y Bonds increased 4BPs to 3.68% because of thetransaction of 170007. The yield of 7Y Bonds rose 2BPs to 3.76% according tothe transaction of 170006, while the yield for Treasury Bonds on 10Y ascended2BPs to 3.63% due to the transaction of 170010.
Similarly, the yields of CDB bonds reduced overall. The yield of 3Y Bond wentup 1BP to 4.33% according to the transaction 170205; referring to thetransaction of 170206, the yield for 5Y Bond increased 1BP to 4.33%. The yieldof 10Y Bond added 1BPs to 4.32% due to the transaction of 170210.
Moreover, the yields of ADBC Bonds waved totally. The yield for 3Y Bond decreased2BPs to 4.36% according to the transaction of 170402. The yield for 10Y Bond ascended2BPs to 4.50% referring to the transaction of 170405. The yield of 20Y Bonddecreased 2 BPs to 4.67%.
Furthermore, the yield of 3Y Bonds stood at 4.36% due to the transactionof 170307, while the yield for 5Y/10Y EXMCH Bond decreased 1BP and 0BPto 4.45%and 4.51% according to the transaction of 170304/170303.
What’s more, for AAA Local Government Bonds on 2Y reached 4.21%..
Credit Bonds
The yields of CP&Notes decreased overall. The yield for AAA 3M reducedto 4.37%. The yield of (AAA 6M/1Y) changed 0BP and +1BP to 4.52% and 4.59%; the3Y of AAA went down 3BPs to 4.93%. The spot on 5Y of AAA dropped 1BP to 5.00%. Theyield of AA 3Y/5Y Bonds both went up 1BP to 5.55% and 5.63%.
The yields for Financial Bonds of Commercial Bank Yield presented mixedpattern focused by funding intense. The spot of Financial Bonds of CommercialBank on (AAA 7d/1M/3M/6M) changed +2BPs, -4BPs, +3BPs and +2BPs to 3.19%, 4.06%,4.61% and 4.61%.
The yields for Urban Construction Bonds fluctuated slightly on high ratedbonds and increased on low rated bonds. Specifically, the yield of UrbanConstruction Bonds AAA on 0.5Y/3Y/5Y changed 0BP, -2BPs and 0BP to 4.74%, 5.03%and 5.15%. The yield of AA on 3Y added 4BPs to 5.63%.
Exchange Market
In addition, there was 4.7 billion of transaction on exchange biddingsystem, which was scale decreased than previous. The yields of high-ratedcorporate bonds went up 3BP; those of corporate bonds and enterprise bonds withmiddle and low ratings maintained the rate of yesterday. There was activetransaction for 122463 and 122342 today.
(3)Data and Statistics
Foreign Exchange Data: the intermediate value of USD/CNY quotation is 6.8786 today, with CNYdecreasing by 174BPs.
PBOC:the Central Bank didnot make any series of reverse repurchase today. There was 20 billion Yuanreverse repurchase due today.
Stock Market:The stock market wavedtoday. Shanghai composite index went up to 3090.63 by 0.49 points (0.02%) andShenzhen component index decreased to 9970.96 by 3.39 points (-0.03%). GEMindex dropped to 1801.08 by 12.43 points (-0.69%).
