The yield slump not only marks a historical single-time decrease record, but ends the continuously falling steps seeking for the so-called bottom.

Before that, the central bank artificially set the issuing yield at a much higher level over that on the secondary market, therefore making the issuing yield hardly to reflect the real capital price.

After the Tuesday's issuing result was released, the institutions orders for the bills immediately rocketed and the delivery yield also fell to 2.27 per cent, still higher than the issuing yield. The yield on the secondary market finally closed at 2.33 per cent, eight BPs higher over the issuing yield, showing the new yield has fully tested the bottom.

The issuing yield of 1-year bill has lost 180 BPs to current level since the beginning of September and that of 3-month bill also underwent a sharp fall of 138 BPs to 2.0156 per cent in the period.

However, this newly formed interest rate system might be a temporary one and the rate would further move down amid loosened liquidity and further cut in interest rate, according to market analysts.

(XIC)

The yield slump not only marks a historical record for one time decrease, but ends the continuously falling step seeking for the so-called bottom.

Before that, the central bank artificially set the issuing yield at a much higher level over that on the secondary market, therefore making the issuing yield hardly to reflect the real capital price.

After the Tuesday's issuing result was released, the institutions orders for the bills immediately rocketed and the delivery yield also fell to 2.27 percent, still higher than the issuing yield. The yield on the secondary market finally closed at 2.33 percent, eight BPs higher over the issuing yield, showing the new yield has fully tested the bottom.

The issuing yield of 1-year bill has lost 180 BPs to current level since the beginning of September and that of 3-month bill also underwent a sharp fall of 138 BPs to 2.0156 percent in the period.

However, this newly formed interest rate system might be a temporary one and the rate would further move down amid loosened liquidity and further cut in interest rate, according to market analyst.

The interest of the bonds will be paid semiyearly starting from October 23. The bonds will become tradable on October 31.