(1)ChinaBond IndexAnalysis
ChinaBond Composite Index tracking general performance of bond market wentup today. The net price index excluding interest revenue rose by 0.0205%; andthe total return index including interest reinvested revenue rose by 0.0422%.In addition, the average yield to maturity was 4.2854%. The average marketcapitalization yield was 4.2313%. And the market value weighted duration was3.8913.
(2)Bond MarketPerformance:
Rate Securities
Generallyspeaking, the yields of Treasury Bonds and Policy Bank Bonds decreased overall,especially in afternoon. In the morning, the auction outcome of CDB Bonds on 3Yincreased slightly, while 5Y and 10Y decreased moderately. By the end of day, theyields of Treasury Bonds descended within 4BPs and the main contract ofTreasury Bonds Future increased 0.55%. The yield of CDB, EXMCH and ADBC Bondsdropped within 6BPs, especially on long term side.
To be morespecific, 3Y Treasury Bonds went up 1BP to 3.20% resulted from the transactionof 170002; 5Y Bonds dropped 4BPs to 3.34% because of the transaction of 170001.Referring to the transaction of 170006, the yield for Treasury Bonds on 7Ydecreased 3BPs to 3.46%. The yield for Treasury Bonds on 10Y descended 4BPs to 3.46%;the yield for Treasury Bonds 30Y went down 1BP to 3.90% according to thetransaction of 170005.
Similarly, theyields of CDB bonds decreased. The yield of 5Y Bond descended 3BPs to 4.20%according to the transaction 160218; referring to the transaction of 170201,the yield for 7Y Bond went down 1BP to 4.35%. The yield of 10Y Bond dropped5BPs to 4.16% due to the transaction of 160213.
Moreover, yieldsof ADBC Bonds went down overall. The yield for 3Y Bonds ascended 1BP to 4.09%;the yield for 10Y Bond decreased 7BPs to 4.34% according to the transaction of170405.
Furthermore, the yieldfor 5Y decreased 3BPs to 4.26% referring to the transaction of 170304; 10Y EXMCHBond dropped 7BPs to 4.36% according to the transaction of 170303.
Credit Bonds
The yields ofCP&Notes increased slightly. Specifically, the yield for AAA 3M descended 1BPsto 4.03%. The yield of (AAA 6M/1Y) changed -1BP and +0BP to 4.19% and 4.47%;the 3Y of AAA increased 4BPs to 4.70%. The spot on 5Y of AAA went up 4BPs to 4.74%.
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)changed +51BPs, +4BPs, -4BPs, +2BP and +2BPs to 3.57%, 4.09%, 4.37%, 4.40% and 4.41%.
The yields forUrban Construction Bonds ascended obviously. Specifically, the yield of UrbanConstruction Bonds AAA on 0.25Y/5Y changed +7.3BPs and +5BPs to 4.39% and 4.90%.The yield of AA+ on 3Y added 4BPs to 5.01%.
Exchange Market
In addition, therewas 2.0 billion of transaction on exchange bidding system, which was scale decreasedslightly than previous. The yields of high-rated corporate bonds ascended 2BPs;those of corporate bonds and enterprise bonds with middle and low ratings wentup 3BPs. There was active transaction for 124815, so that its yields increasedas a result.
(3)Data and Statistics
Foreign Exchange Data: the intermediatevalue of USD/CNY quotation is 6.8833 today, with CNY decreasing by 160BPs,which was the largest decrease in last two month.
PBOC: the Central Bank madea series of reverse repurchase of 40 billion Yuan for 7 days, 20 billion Yuanfor 14 days, and 20 billion Yuan for 28 days. 40 billion Yuan reverserepurchase due today, and the Central Bank made a net release of 40 billionYuan today. The Central Bank had already made net release for six days.
SHIBOR: All terms increasedslightly moderately today. SHIBOR Overnight went up 3.57BPs to 2.7514%. SHIBOR2W increased 2.70BPs to 2.2680%,
Stock Market:The stock market ascendedoverall today. Shanghai composite index added to 3134.57 by 5.04 points (0.16%)and Shenzhen component index increased to 10165.22 by 73.33 points (0.73%). GEMindex went up to 1818.87 by 8.96points (0.50%).
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