Bond prices on China's interbank bond market are likely to rise Friday amid lower funding costs. Traders noted that though the People's Bank of China, China's central bank, reduced the amount of net injections to the financial system this week.
Capital prices still hovered at a relatively low level, which provided a support to bond prices. The People's Bank of China, China's central bank, conducted 40 billion yuan worth of 7-day reverse repos at annualized yield of 2.5 percent in Thursday's open market operations.
It injected a net 20 billion yuan this week, down from 30 billion yuan in last week. On Thursday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, added 0.0107 percent to 163.5911 points.
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