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T-bonds See Broad Rise on Friday
China's T-bond market witnessed a broad rise Friday while the trade remained narrow with a turnover of 1.37 billion yuan, five million yuan more than yesterday.
Sources say that 009908, a 3.30 percent bond due 2009, jumped the most to 101.75 yuan, 0.23 percent higher than yesterday's close price, driving the yield down 0.04 percentage points to 3.44 percent.
With a floating interest rate, which is 2.87 percent this year, Bond 010004 ended the session up 0.08 percent at 102.19 yuan, creating a new record. The big gain of the bond in recent days may have attracted many profit takers, according to Homeway, China's leading on-line financial and securities advisory company.
The turnover of the domestic stock trade contracted when the composite stock indices on the two domestic stock exchanges climbed for the sixth consecutive day. This may suggest a round of corrections in near future for stocks. With lower expected return, the T-bond trade may turn a bit active in the weakness of the equity market.
The trade volume on three-day, seven-day, 14-day and 28-day repo transactions decreased by 1.48 billion yuan to 6.03 billion yuan. Meanwhile, the interest rate on the three-day transaction dipped by 2.79 percentage points to 1.01 percent.
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