Bond prices on China's interbank bond market are likely to increase Friday amid investors' rising expectation of required reserve ratio (RRR) cut.
Traders noted that the central bank was expected to cut its RRR by 50 pbs before the Spring Festival holiday in a bid to keep the liquidity environment stable.
The People's Bank of China, China's central bank, conducted 160 billion yuan worth of 7-day reverse repos at an annualized yield of 2.25 percent in Thursday's open market operations, the biggest amount seen this year.
On Thursday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, gained 0.0034 percent to close at 170.7734 points.
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