(1)ChinaBond Index Analysis
ChinaBond Composite Index tracking general performance of bond market wentup today. The net price index excluding interest revenue rose by 0.0072%; andthe total return index including interest reinvested revenue rose by 0.0185%.In addition, the average yield to maturity was 4.5387%. The average marketcapitalization yield was 4.5366%. And the market value weighted duration was3.8322.
(2)Bond Market Performance:
Rate Securities
Generally speaking, the yields of Treasury Bonds and Policy Bank Bonds wentdown overall. In the afternoon, the auction outcome of ADBC Bonds on 1/3/4/10Y descendedmoderately. By the end of day, the yields of Treasury Bonds went down within 4BPs; the yields for CDB and ADBC Bonds dropped slightly, while EXIMBC Bonds showedmixed pattern, waving within 2BPs overall.
To be more specific, the yield of Treasury Bonds (3Y) went down by 4BPs to3.67% according to the transaction of 170008; 5Y Bonds dropped by 4BPs to 3.66%resulted from the transaction of 170007; referring to the quotation andtransaction of 170006, the yield for 7Y Bonds decreased by 4BPs to 3.73%, andnotably, the yield for Treasury Bonds (10Y) went down by 1BP to 3.66% caused bythe quotation and transaction of 170010.
Similarly, the yields of CDB bonds experienced a downtrend overall. Theyield of 3Y Bonds decreased by 1BP to 4.34% because of the transaction of170205; 7Y Bonds stood at 4.49% resulted from the quotation and transaction of170201; referring to the transaction of 170210, the yield for 10Y Bonds droppedby 1BP to 4.34%.
Moreover, the yields of ADBC Bonds fluctuated slightly. The yield for 1YBonds descended by 2BPs to 4.17% according to the transaction of 170408; referringto the transaction of 170405, the yield for 10Y Bonds decreased by 3BPs to 4.52%.
Furthermore, the yields for EXIMBC Bonds also waved slightly. The yield of3Y EXIMBC Bonds kept stable at 4.39% due to the transaction of 170307; 5Y Bondswent up by 2BPs to 4.48% resulted from the quotation and transaction of 170304;while the yield for 10Y EXIMBC Bonds went down by 1BP to 4.53% according to thetransaction of 170303.
What’s more, AAA Local Government Bonds on 4/8/9Y rose up to 4.38%, 4.43% and4.43% caused by market transaction, and the yield for AAA- Local GovernmentBonds on 9Y increased to 4.54% because of market price.
Credit Bonds
The yields for highly rated credit bonds decreased, while those for lowerrated credit bonds went down, resulting in greater credit spread. To be morespecific, the yields of AAA CP&Notes on 3M went down by 2BPs to 4.30%. Theyield of AAA 6M dropped by 5BPs to 4.48%, and the yield for 1Y changed -3BPs to4.59%. The yield for 3Y of AAA descended by 2BPs to 4.90%.while that of AAA 5YBonds rose by 1BP to 4.99%. The yields for AA CP&Notes on 3/5Y changed +1BPand +4BPs to 5.55% and 5.67%.
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/1Y) changed +37BPs, -2BP, +5BPs and -3BPs to 3.40%, 3.95%,4.66% and 4.68%.
The yields for Urban Construction Bonds saw a downtrend on highly ratedbonds and an uptrend on lower rated ones. Specifically, the yield of UrbanConstruction Bonds AAA on 1Y/5Y changed +1BP and -2BP to 4.91% and 5.11%. Theyields of AA(2) on 2Y/5Y added 3BPs and 5BPs to 5.95% and 6.21%.
Exchange Market
In addition, there was 6.6 billion of transaction on exchange biddingsystem, which was scale increased than previous. The yields of highly ratedcorporate bonds went up by 3BPs; those of corporate bonds and enterprise bondswith middle and low ratings increased by 1BP. There was active transaction for 1280053today.
(3)Data and Statistics
PBOC:the Central Bank madea series of reverse repurchase of 40 billion Yuan for 7 days and 50 billionYuan for 14 days. There was 140 billion Yuan reverse repurchase due today, andthe Central Bank made a net withdrawal of 50 billion Yuan.
Foreign Exchange Data: the intermediate value of USD/CNY quotation is 6.8758 today, with CNY decreasedby 97 BPs.
Stock Market:The stock market increasedfinally after wide shocks. Shanghai composite index went up to 3064.08 by 2.13 points(0.07%) and Shenzhen component index increased to 9812.46 by 48.68 points (0.50%).GEM index rose by 18.05 points (1.03%) to 1776.28.
