(1)ChinaBond Index Analysis

　　ChinaBond Composite Index tracking general performance of bond market wentup today. The net price index excluding interest revenue rose by 0.0321%; andthe total return index including interest reinvested revenue rose by 0.0440%.In addition, the average yield to maturity was 4.5267%. The average marketcapitalization yield was 4.5287%. And the market value weighted duration was3.8369.

　　(2)Bond Market Performance:

　　Rate Securities

　　Generally speaking, the trading on the Treasury Bonds and Policy BankBonds was light, resulting in the yields kept relatively stable overall. By theend of day, the yields of Treasury Bonds went downwards slightly by 1BP as awhole; the yields for CDB, ADBC and EXIMBC Bonds showed mixed pattern withsmall fluctuation.

　　To be more specific, the yield of Treasury Bonds (3Y) dropped by 1BP to 3.63%according to the transaction of 170008; 5Y Bonds went down by 2BPs to 3.64%resulted from the transaction of 170007; referring to the quotation andtransaction of 170006, the yield for 7Y Bonds decreased to 3.70% by 1BP, andnotably, the yield for Treasury Bonds (10Y) leveled off at 3.65% caused by thequotation and transaction of 170010.

　　Similarly, the yields of CDB bonds waved slightly overall. Referring tothe transaction of 170210, the yield for 10Y Bonds descended by 2BPs to 4.34%; theyield of 20Y Bonds kept steady at 4.65% because of the transaction of 170202.

　　Moreover, the yields of ADBC Bonds experienced a small downtrend. Theyield for 1Y Bonds decreased by 1BP to 4.18% according to the transaction of170408; the yield of 3Y Bonds went down by 1BP to 4.36% caused by thetransaction of 170407; referring to the transaction of 170405, the yield for 10YBonds decreased by 3BPs to 4.50%.

　　Furthermore, the yields for EXIMBC Bonds also fluctuated slightly. Theyield of 3Y Bonds went up by 1BP to 4.36% resulted from the quotation andtransaction of 170307; while the yield for 5Y EXIMBC Bonds stood at 4.44%according to the transaction of 170304.

　　What’s more, AAA Local Government Bonds on 3Y dropped to 4.31% caused by markettransaction.

　　Credit Bonds

　　The credit bonds had low trading volumes, and the yields dropped slightlytoday. To be more specific, the yields of AAA CP&Notes on 3M went up by 1BPto 4.24%. The yield of AAA 6M descended by 1BP to 4.45%, and the yield for 1Y keptstable at 4.58%. The yield for 3Y of AAA stood at 4.90%, while that of AAA 5YBonds dropped to 4.98% by 1BP.

　　The yields for Financial Bonds of Commercial Bank Yield, including CD, presentedmixed pattern focused by funding intense. The spot of Financial Bonds ofCommercial Bank on (AAA 7d/1M/3M/6M/1Y) changed 0BP, -8BP, +2BPs, 0BP and 0BP to3.63%, 3.84%, 4.66%, 4.66%and 4.66%.

　　The yields for some Urban Construction Bonds were in a narrow range. Specifically,the yield of Urban Construction Bonds AAA on 1Y/3Y both changed 0BP at 4.87%and 4.99%. The yields of AA on 1Y/5Y added 0BP and -1BPs to 5.28% and 5.80%.

　　(3)Data and Statistics

　　PBOC:the Central Bank madeno action of OMO, and there was no reverse repurchase due today.