China government bonds close higher amid increasing demand for safe-haven assets after the Shanghai Composite Index fell below its psychological support of 2000 for the first time in 44 months, says a Shenzhen-based trader with a local brokerage. Also, the PBOC's record CNY290 billion reverse repo offerings on Tuesday boosted liquidity conditions in the money market, hence supporting bond prices, he adds. The Shanghai exchange government bond index ends at 134.75 vs 134.72 at Tuesday's close; the index may consolidate ahead of the week-long National Day holiday that starts this Sunday.
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