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A potential bullish reversal in.........>

CHINA RATES
CHINA RATES: A potential bullish reversal in Chinese rates could be in the
offing as the swap curve shifts higher after hitting fresh lows yesterday. The
2-year sits at 2.5725%, up 5.25bps on the day. A close back above 2.6% would be
a bullish signal suggesting that Chinese rates are following global stocks and
US rates higher. 
- The spread of US over China rates has risen over the past week with the 1-year
spread hitting fresh multi-year highs.
- While the stability in the yuan affords the PBOC to ability to keep monetary
policy loose, the improvement in risk appetite is reducing the need for further
accommodation, suggesting that rate risks are tilted to the upside. 

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