(1) ChinaBond Index Analysis

　　ChinaBond Composite Index tracking general performance of bond market dropped today. The net price index excluding interest revenue declined by 0.0368%; and the total return index including interest reinvested revenue declined by 0.0242%. In addition, the average yield to maturity was 4.3170%. The average market capitalization yield was 4.2518%. And the market value weighted duration was 3.8624.

　　(2) Bond Market Performance:

　　Rate Securities

　　Generally speaking, the yields of Treasury Bonds and Policy Bank Bonds experienced a small fluctuation as a whole. In the morning, the auction outcome of EXIMBC Bonds on 3Y/5Y/10Y and in the afternoon, that of CDB Bonds on 5Y/7Y went up a little. By the end of day, the yields of Treasury Bonds, CDB, ADBC and EXIMBC Bonds went up notably because of the shortage of fund, while 1Y and above went up entirely by 1-2BPs except for a few bonds.

　　To be more specific, the yield of Treasury Bonds (3Y) went up by 1BP to 3.48% according to the transaction of 170016; 5Y Bonds kept stable at 3.59% resulted from the transaction of 170014; referring to the quotation and transaction of 170013, the yield for 7Y Bonds kept stable at 3.68%, and notably, the yield for Treasury Bonds (10Y) dropped by 1BP to 3.59% caused by the quotation and transaction of 170018; the yield for Treasury Bonds (30Y) went up by 3BPs to 4.13% caused by the quotation and transaction of 170015.

　　The yields of CDB bonds went up by a small amount. The yield of 3Y Bond stayed at 4.13% because of the transaction of 170205; 5Y Bond increased by 2BPs to 4.21% resulted from the quotation and transaction of 170206; referring to the transaction of 170210, the yield for 10Y Bond dropped by 1BP to 4.27%.

　　Moreover, the yields of ADBC Bonds went up a little entirely. The yield for 1Y Bond increased by 1BP to 3.73% according to the transaction of 170410; 3Y Bond increased by 1BP to 4.13% caused by the transaction of 170407.

　　Furthermore, the yields of EXIMBC Bonds rose a little as well. The yield for 5Y Bond went up by 1BP to 4.23% according to the transaction of 170309; 10Y Bond kept stable at 4.30% caused by the transaction of 170303.

　　Credit Bonds

　　The yields for credit bonds on mid-term and short-term bonds increases entirely today, especially the short-term bonds. To be more specific, the yields of 1M went up by 8BPs to 3.81%. The yields of AAA CP&Notes on 3M went up by 11BPs to 4.22%. The yield of AAA 6M stayed at 4.24%, and the yield for 1Y went up by 1BP to 4.40%. The yield for 3Y of AAA went up by 1BP to 4.57%, while that of AAA 5Y Bonds kept stable at 4.68%.

　　The yields for Financial Bonds of Commercial Bank Yield, including CD, went up entirely. The spot of Financial Bonds of Commercial Bank on (AAA 7d/1M/3M/6M/1Y) changed +28BPs, +14BPs, +4BPs, 0BP and 5BPs to 3.93%, 4.02%, 4.41%, 4.39% and 4.49%.

　　The yields for Urban Construction Bonds went up entirely. Specifically, the yield of Urban Construction Bonds AAA on 0.5Y/3Y/5Y changed by +5BPs, +1BP and 0BP to 4.42%, 4.66% and 4.75%. The yields of AA Bonds on 2Y went up by 2BPs to 4.86%, while that of 4Y increased by 1BP to 5.11%.

　　What\'s more, AAA Local Government Bonds on 2Y/3Y/5Y reached the level of 3.84%, 3.84% and 3.97% caused by market transaction. AAA Local Government Bonds on 2Y/4Y/10Y reached the level of 3.89%, 4.01% and 4.11% caused by market transaction.

　　Exchange Market

　　In addition, there was 5.1 billion of transaction on exchange bidding system, which was scale increased than previous. The yields of highly rated corporate bonds went up by 1BP. Those of corporate bonds and enterprise bonds with middle and low ratings went up by 2BPs. There was active transaction for 136148 today.

　　(3) Data and Statistics

　　Foreign Exchange Data: the intermediate value of USD/CNY quotation is 6.6709 today, with CNY appreciating by 70BPs today.

　　Currency Market:the fund interest rates went up a little, with the overnight shibor going up by 1.39BPs to 2.8352%, and 1M shibor going up by 0.82BPs to 3.8582%.

　　PBOC: the Central Bank conducted reverse repurchase with 60 billion for 7D and 40 billion for 14D today. There was 50 billion reverse repurchase due today and the net injection was 50 billion.

　　Stock Market:The trends of the stock markets were going up today. Shanghai composite index went up to 3268.43 by 21.98 points (0.68%) and Shenzhen component index went up to 10653.73 by 52.95 points (0.50%). GEM index went up by 8.21 points (0.45%) to 1833.40.

　　Treasury Future: