MARKET TALK: China Bonds End Up; Index To Test 131.95 -Trader

China government bonds close modestly higher after the PBOC's higher money supply projection for this year; M2 is expected to rise 14% this year, faster than the 13.6% increase last year. "The M2 target is a fresh indicator that the policy makers would appropriately ease its monetary policy this year to bolster the economy," says a Shanghai-based trader with a local brokerage. The Shanghai exchange government bond index ends at 131.93, from 131.92 at Wednesday's close, and is tipped to test 131.95 resistance Friday.