(1)ChinaBond Index Analysis
ChinaBond Composite Index tracking general performance of bond marketslightly dropped today. The net priceindex excluding interest revenue declined by 0.0190%; and the total returnindex including interest reinvested revenue declined by 0.0070%. In addition,the average yield to maturity was 4.5348%. The average market capitalizationyield was 4.5364%. And the market value weighted duration was 3.8405.
(2)Bond Market Performance:
Rate Securities
Generally speaking, the yields of Treasury Bonds and Policy Bank Bonds keptrelatively stable overall. In the morning, the auction outcome of TreasuryBonds on 3M ascended moderately. By the end of day, the yields of TreasuryBonds went up 1BP as a whole; the yields for CDB, ADBC andEXIMBC Bonds showed mixed pattern, waving within 2BPs.
To be more specific, the yield of Treasury Bonds (3Y) kept stable at 3.64%according to the transaction of 170008; 5Y Bonds went up by 1BP to 3.66%resulted from the transaction of 170007; referring to the quotation andtransaction of 170006, the yield for 7Y Bonds stood at 3.71%, and notably, theyield for Treasury Bonds (10Y) also leveled off caused by the quotation andtransaction of 170010.
Similarly, the yields of CDB bonds experienced small fluctuation overall.The yield of 3Y Bonds kept steady at 4.32% because of the transaction of170205; 7Y Bonds dropped by 1BP to 4.48% resulted from the quotation andtransaction of 170201; referring to the transaction of 170210, the yield for10Y Bonds stood at 4.36%.
Moreover, the yields of ADBC Bonds fluctuated slightly. The yield for 1YBonds stood at 4.19% according to the transaction of 170408; referring to thetransaction of 170405, the yield for 10Y Bonds increased by 3BPs to 4.53%.
Furthermore, the yields for EXIMBC Bonds also waved slightly. The yield of5Y Bonds went down by 1BP to 4.45% resulted from the quotation and transactionof 170304; while the yield for 10Y EXIMBC Bonds ascended by 2BPs to 4.53%according to the transaction of 170303.
What’s more, AAA LocalGovernment Bonds on 4/6Y rose up to 4.40%, 4.41% caused by market transaction, andthe yield for AAA- Local Government Bonds on 10Y decreased to 4.55% because ofmarket price.
Credit Bonds
The yields for credit bonds experienced slight fluctuation today. To bemore specific, the yields of AAA CP&Notes on 3M went down by 1BP to 4.23%. Theyield of AAA 6M kept stable at 4.46%, and the yield for 1Y also kept stable at 4.58%.The yield for 3Y of AAA stood at 4.90%, while that of AAA 5Y Bonds leveled offat 4.99%.
The yields for Financial Bonds of Commercial Bank Yield, including CD, alsopresented mixed pattern focused by funding intense. The spot of Financial Bondsof Commercial Bank on (AAA 7d/1M/3M/6M/1Y) changed +1BP, -3BP, -3BPs, 0BP and0BP to 3.63%, 3.92%, 4.63%, 4.66%and 4.66%.
The yields for some Urban Construction Bonds went up and others dropped. Specifically,the yield of Urban Construction Bonds AAA on 1Y/5Y changed 0BP and +2BPs to 4.87%and 5.12%. The yields of AA on 3Y/5Y added +2BPs and +2BPs to 5.65% and 5.81%.
Exchange Market
In addition, there was 3.3 billion of transaction on exchange biddingsystem, which was scale decreased than previous. The yields of highly ratedcorporate bonds went down by 4BPs; those of corporate bonds and enterprisebonds with middle and low ratings rose by 1BP. There was active transaction for1280053 today.
(3)Data and Statistics
PBOC:the Central Bank madea series of reverse repurchase of 20 billion Yuan for 7 days and 20 billionYuan for 14 days. There was 20 billion Yuan reverse repurchase due today, andthe Central Bank made a net release of 20 billion.
Foreign Exchange Data: the intermediate value of USD/CNY quotation is 6.8698 today, with CNY decreasedby 3 BPs.
Stock Market:The stock marketspresented mixed pattern today. Shanghai composite index went up slightly to 3110.06by 2.23 points (0.07%) and Shenzhen component index decreased to 9859.23 by 34.55points (-0.35%). GEM index dropped by 18.06 points (-1.02%) to 1759.63.
