(1)ChinaBond IndexAnalysis
ChinaBondComposite Index tracking general performance of bond market dropped today. Thenet price index excluding interest revenue declined by 0.0870%; and the totalreturn index including interest reinvested revenue declined by 0.0470%. Inaddition, the average yield to maturity was 4.5377%. The average marketcapitalization yield was 4.5334%. And the market value weighted duration was3.8336.
(2)Bond MarketPerformance:
Rate Securities
Generallyspeaking, the yields of Treasury Bonds and Policy Bank Bonds increased slightly.By the end of day, the yields of Treasury Bonds went up within 4BPs, while theyield of CDB, EXMCH and ADBC Bonds waved within 2BPs.
To be morespecific, the yield of Treasury Bonds (3Y) went up by 3BPs to 3.72% accordingto the transaction of 170008; 5Y Bonds went up by 4BPs to 3.72% resulted fromthe transaction of 170007; referring to the quotation and transaction of170006, the yield for 7Y Bonds increased by 4BPs BP to 3.79%, and notably, theyield for Treasury Bonds (10Y) increased by 4BPs to 3.66% caused by thequotation and transaction of 170010.
Similarly, theyields of CDB bonds went up slightly. The yield of 3Y Bond increased by 1BP to4.33% because of the transaction of 170205; 5Y Bond went up by 4BPs to 4.37%resulted from the quotation and transaction of 170206; referring to thetransaction of 170210, the yield for 10Y Bond increased by 1BP to 4.32%.
Moreover, yieldsof ADBC Bonds rose slightly. The yield for 1Y Bond went up by 3BPs to 4.18%according to the transaction of 170408; 10Y Bond went up by 4BPs to 4.55%caused by the transaction of 170405.
Furthermore, the yieldof 3Y EXMCH Bonds went up 1BP to 4.37% due to the transaction of 170307, while theyield for 10Y EXMCH Bond increased 4BPs to 4.54% according to the transactionof 170303.
What’s more, AAA Local Government Bonds on 3/7Yreduced 6 and 7BPs to 4.21% and 4.43% caused by market prices.
Credit Bonds
The yields ofCP&Notes showed wave pattern overall. The yield for AAA 3M went down 2BPsto 4.35%. The yield of (AAA 6M/1Y) changed -4BPs and -1BP to 4.35% and 4.58%;the 3Y of AAA went down 2BPs to 4.91%. The spot on 3Y of AAA dropped 2BPs to 4.91%.The yield of AAA 5Y/10Y Bonds changed -1BP and +2BPs to 4.99% and 5.03%.
The yields for FinancialBonds of Commercial Bank Yield presented mixed pattern focused by fundingintense. The spot of Financial Bonds of Commercial Bank on (AAA 7d/1M/3M/6M/1Y)changed -14BPs, -6BPs, 0BP, +1BP and +2BPs to 3.05%, 4.00%, 4.61%, 4.62%, and4.63%.
The yields forUrban Construction Bonds fluctuated slightly on high rated bonds and increasedon low credit level bonds. Specifically, the yield of Urban Construction BondsAAA on 1Y/5Y/8Y changed -1BP, -2BPs and +2BPs to 4.87%, 5.14% and 5.19%. Theyields of AA/AA(2) on 3Y, both, added 2BPs and 3BPs to 5.68% and 5.98%.
Exchange Market
In addition, therewas 5.5 billion of transaction on exchange bidding system, which was scale increasedthan previous. The yields of high-rated corporate bonds went down 2BPs; thoseof corporate bonds and enterprise bonds with middle and low ratings went up2BPs. There was active transaction for 148520 today.
(3)Data and Statistics
Foreign Exchange Data: the intermediatevalue of USD/CNY quotation is 6.8673 today, with CNY increasing by 113BPs. TheCFETS index was down to 92.49, which meeting the floor since released. Theindex reduced 0.57% than the week before last week, which had been devalued2.47% since this January.
PBOC:the Central Bank madea series of reverse repurchase of 10 billion Yuan for 7 days and 30 billionYuan for 14 days. There was 10 billion Yuan reverse repurchase due today, andthe Central Bank made a net release of 30 billion Yuan.
Stock Market:The stock market wentdown overall. Shanghai composite index went down to 3075.68 by 14.95 points (-0.48%)and Shenzhen component index decreased to 9899.65 by 71.31 points (-0.72%). GEMindex dropped to 1788.08 by 13.00 points (-0.72%).
