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CHINA RATES

China's MOF will today sell CNY 54bn of 10-year upsized bonds, results due after 0335BST/1035HKT. The MOF last sold 10-year debt on March 17, the sale drew an average yield of 3.224% with a tail of 2.32bps. The auction had total bid/cover of 4.723, with marginal cover at high yield of 7.225.

  • Corporate debt took a hit overnight after a research report from Reorg that posited regulators are considering a restructuring for the firm's offshore arm that could result in losses for bondholders. A rebound in corporate debt markets had been cited as taking some of the shine off government securities. Repo rates are slightly lower, the overnight repo rate hovering around 1.7%, while the 7-day repo rate is back below 2.20%, which could also help support the sale.

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