(1) ChinaBond Index Analysis
ChinaBond Composite Index tracking general performance of bond market went up today. The net price index excluding interest revenue rose by 0.0113%; and the total return index including interest reinvested revenue rose by 0.0235%. In addition, the average yield to maturity was 4.4095%. The average market capitalization yield was 4.3805%. And the market value weighted duration was 3.8533.
(2) Bond Market Performance:
Generally speaking, the yields of Treasury Bonds and Policy Bank Bonds waved a little entirely. In the morning, the auction outcome of Treasury Bonds on 1Y/10Y were just slightly different from yesterday with 1Y going up notably and 10Y going down slightly. In the afternoon, the auction outcomes of ADBC Bonds on 1Y/7Y/10Y were mixed within a small range. By the end of day, the yields of Treasury Bonds went down by 1BP except for the short-term bonds; CDB, ADBC and EXIMBC Bonds entirely fluctuated by 1-2BPs.
To be more specific, the yield of Treasury Bonds (3Y) dropped by 1BP to 3.57% according to the transaction of 170016; 5Y Bonds decreased by 1BP to 3.63% resulted from the transaction of 170014; referring to the quotation and transaction of 170013, the yield for 7Y Bonds went down by 1BP to 3.71%, and notably, the yield for Treasury Bonds (10Y) descended by 1BP to 3.66% caused by the quotation and transaction of 170018; the yield for Treasury Bonds (30Y) kept stable at 4.24% caused by the quotation and transaction of 170015.
The yields of CDB bonds went down by a small amount. The yield of 3Y Bond kept stable at 4.27% because of the transaction of 170205; 5Y Bond dropped by 3BP to 4.36% resulted from the quotation and transaction of 170206; referring to the transaction of 170215, the yield for 10Y Bond went down by 2BPs to 4.3%.
Moreover, the yields of ADBC Bonds fluctuate a little entirely. The yield for 1Y Bond kept stable at 4.03% according to the transaction of 170410; 10Y Bond dropped by 1BP to 4.41% caused by the transaction of 170415.
Furthermore, the yields of EXIMBC Bonds waved a little entirely. The yield for 5Y Bond went down by 1BP to 4.37% according to the transaction of 170309; 10Y Bond dropped by 1BP to 4.43% caused by the transaction of 170303.
The yields for credit bonds on short-term bonds and mid-term bonds presented mixed pattern. To be more specific, the yield of 3M ascended by 3BPs to 4.43%. The yield of AAA 6M increased by 2BPs to 4.45%, and the yield for 1Y went up by 4BPs to 4.59%. The yield for 3Y of AAA kept stable at 4.73%, while that of AAA 5Y Bonds stayed at 4.77%.
The short-term yields for Financial Bonds of Commercial Bank Yield, including CD, were mixed. The spot of Financial Bonds of Commercial Bank on (AAA 7d/1M/3M/6M/1Y) changed 0BP, -2BPs, 0BP, +7BPs and +2BPs to 3.30%, 4.19%, 4.56%, 4.57% and 4.62%.
The yields for Urban Construction Bonds waved a little. Specifically, the yield of Urban Construction Bonds AAA on 0.5Y/3Y/5Y changed by 0BPs, -1BP and +1BP to 4.69%, 4.84% and 4.90%. The yields of AA Bonds on 2Y rose by 2BPs to 5.09%, while that of 5Y increased by 1BP to 5.33%.
What’s more, AAA Local Government Bonds on 3Y/5Y reached the level of 3.88% and 4.01% caused by market transaction.
In addition, there was 4.7 billion of transaction on exchange bidding system, which was scale decreased than previous. The yields of highly rated corporate bonds dropped by 4BPs. Those of corporate bonds and enterprise bonds with middle and low ratings increased by 1BP. There was active transaction for 122395 today.
(3) Data and Statistics
Macro Economics: Caixin China’s PMI of August was 52.7, which was the highest for the past three months and the former data was 51.5; the official services PMI of August was 52.6, down by 0.5% than last month; Caixin composite PMI was 52.4, and the former data was 51.9.
Currency Market: the fund interest rates fluctuated a little entirely, with the overnight shibor down by 2.4BPs to 2.6410%, and 1M shibor increasing by 0.96BPs to 3.9190%.
Foreign Exchange Data:the intermediate value of USD/CNY quotation is 6.5311 today, with CNY appreciating by 59BPs today, the eighth day of appreciation, which was the new highest since May 18th last year.
PBOC: The Central Bank made a series of reverse repurchase, with 20 billion for 7 days and 20 billion for 28 days. There was 160 billion reverse repurchase due today and the net withdrawal was 120 billion.
Stock Market:The trends of the stock markets went up slightly today. Shanghai composite index increased to 3385.39 by 1.07 points (0.03%) and Shenzhen component index ascended to 11024.59 by 37.64 points (0.34%). GEM index rose by 17.7 points (0.94%) to 1902.86.