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As Chinese equities and the yuan........>

CHINA RATES
CHINA RATES: As Chinese equities and the yuan consolidate their trade-headline
driven gains, rate markets continue to show no sign of joining in the recovery. 
- 2-year swaps remain down 2.5bps on the day while 10-year swaps are down 3bps.
The bull flattening in the swap market is particularly at odds with the break
out in the Chinext, which has added almost 2% today. 
- The strong longer term positive correlation between stocks and rates remains
intact and we would expect any further rise in stocks to lift rate markets
higher despite today's price action. 

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