(1)ChinaBond Index Analysis
ChinaBondComposite Index tracking general performance of bond market went up today. Thenet price index excluding interest revenue rose by 0.0129%; and the totalreturn index including interest reinvested revenue rose by 0.0249%. Inaddition, the average yield to maturity was 4.2613%. The average marketcapitalization yield was 4.2134%. And the market value weighted duration was3.8692.
(2)Bond Market Performance:
Generallyspeaking, the yields of Treasury Bonds and Policy Bank Bonds waved slightly ingeneral. In the morning, the auction outcome of Treasury Bonds on 7Y went downa little. In the afternoon, the auction outcomes of ADBC 1/7/10Y went down aswell. By the end of day, the yields of short-term Treasury, CDB, ADBC andEXIMBC Bonds floated within 3BPs.
To be morespecific, the yield of Treasury Bonds (3Y) went down by 1BP to 3.49% accordingto the transaction of 170008; 5Y Bonds went down by 1BP to 3.51% resulted fromthe transaction of 170007; referring to the quotation and transaction of170013, the yield for 7Y Bonds kept at 3.63%, and notably, the yield forTreasury Bonds (10Y) stood at 3.59% caused by the quotation and transaction of170010; the yield for Treasury Bonds (30Y) was down by 1BP to 3.97% caused bythe quotation and transaction of 170005.
Similarly, theyields of CDB bonds slipped slightly. The yield of 3Y Bond kept flat at 4.03%because of the transaction of 170205; 5Y Bond stood at 4.12% resulted from thequotation and transaction of 170206; referring to the transaction of 170210,the yield for 10Y Bond kept at 4.19%.
Moreover, yieldsof ADBC Bonds fluctuated generally. The yield for 3Y Bond kept stable at 4.04%according to the transaction of 170407; 5Y Bond increased by 1BP to 4.15%caused by the transaction of 170409.
The yields of EXIMBCBonds wave a little as above. The yield for 1Y Bond kept at 3.76% according tothe transaction of 170308; 10Y Bond was down by 1BP to 4.26% caused by thetransaction of 170303.
What’s more, AAA Local Government Bonds on 1/2Yreached the level of 3.81% and 3.86% caused by market transaction.
The yields forcredit bonds showed mixed pattern. To be more specific, the yields of AAA CP&Noteson 3M ascended by 1BP to 4.15%. The yield of AAA 6M went down by 1BP to 4.25%,and the yield for 1Y raised 1BP to 4.40%. The yield for 3Y of AAA went up by 3BPsto 4.48%, while that of AAA 5Y Bonds went down by 1BP to 4.61%.
The yields for FinancialBonds of Commercial Bank Yield, including CD, presented mixed pattern especiallyfor short-term ones. The spot of Financial Bonds of Commercial Bank on (AAA 7d/1M/3M/6M/1Y)changed 1BP, 0BP, -3BPs, 0BP and +2BPs to 3.94%, 3.94%, 4.18%, 4.31% and 4.36%.
The yields forUrban Construction Bonds ascended entirely. Specifically, the yield of UrbanConstruction Bonds AAA on 1Y/5Y changed by +1BP and +1BP to 4.44% and 4.71%. Theyields of AA Bonds on 2Y went up by 1BP to 4.72%.
In addition, therewas 5.3 billion of transaction on exchange bidding system, which was scale bloomedthan previous. The yields of highly rated corporate bonds kept previous rate; thoseof corporate bonds and enterprise bonds with middle and low ratings was up by2BPs. There was active transaction for 112138 today.
(3)Data and Statistics
Foreign Exchange Data: The intermediatevalue of USD/CNY quotation was 6.7451 today, with CNY increasing by 160 BPs,which is the highest point since 21st Nov, 2016.
Currency Market: the fund interestrates were mixed entirely, with the overnight shibor up by 2.10BP to 2.7220%,while 1M shibor descended by 0.69 BPs to 3.9920%.
PBOC: the Central Bank made a series ofreverse repurchase of 100 billion Yuan for 7 days, 40 billion Yuan for 14 days.With 40 billion Yuan of reverse repurchase due, the Central Bank made a net releaseof 100 billion Yuan. It was the third consecutive day of large amount ofrelease.
Stock Market: The stock marketswent up. Shanghai composite index went up to 3230.98 by 43.41 points (or 1.36%)and Shenzhen component index went up to 10295.57 by 191.81 points (or 1.90%).GEM index went up to 1684.77 by 17.28 points (or 1.04%).
