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HONG KONG: Interbank rates finished steady to slightly easier and government paper yields were mostly higher after a day of dull trading, dealers said.

Overnight eased to 5-1/4 1/8 percent from 5-3/8 5/16 and three month rate was steady at 5-3/4 5/8 percent.

"It's a quiet day today as too many traders are on vacation," a dealer at a Japanese bank said.

The focus was on tonight's US employment figures but dealers were divided on whether they would be negative or positive for the market.

Exchange Fund bills and notes generally followed the performance of US Treasurys and closed mostly lower.

One-week bills, which were in demand in the morning, closed unchanged at 5.30 percent against 5.26.

Three-year notes yielded 6.52 percent, up eight basis points from Thursday's close, and five-year notes 7.23, against 7.11 percent.

"Prices on notes fluctuated widely today but trading was thin," a dealer said.

The closing balance of the Exchange Fund account was HK$2.30 billion after banks deposited HK$35 million at the discount window.-Reuter