As the week-long National Day holiday...>

CHINA PRESS: As the week-long National Day holiday approaches, liquidity seems

to be tightening, with treasury bond repurchase rates rising rapidly, the 21st

Century Business Herald reported Thursday. Analysts told the newspaper the rise

in yields was partly due to seasonal factors. Banks face the PBOC's

Macro-Prudential Assessment at the end of September, so they have improved their

books by reducing their financing to non-bank institutions, which has caused

repurchase costs to edge up. Additionally, given the recent slowdown seen in

China's economic data as well as the imposition of stricter government controls

on the property sector, the market is more optimistic about bond market outlook,

increasing the demand from non-bank financial institutions for financing as they

boost their investments in the bond market and add leverage, analysts were

quoted as saying. (21st Century Business Herald)