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CHINA RATES

China will sell CNY 30bn of 50-year bonds today, results due after 0235GMT/1035HKT

  • The previous sale on December 18 drew an average yield of 3.9034%, with bid/cover of 2.72.
  • HSBC are bullish on Chinese debt and recommend longer term bonds. They note that Y/Y actitvity looks strong due to a low base effect but sequentially the figures have been weak. They say because of this rate hikes are still some way off and also recommend Chinese debt for its diversification attributes.

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