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Bond Wrap

CHINA
  • Local governments in China are seeking new revenue streams to address debt pressure by leveraging government-owned assets, Caixin reports.
  • In sign of greater autonomy asset sales, rather than debt issuance may be the next phase for some regions.
  • The selling pressure in the corporate or credit bond market is manageable and there is little risk of a vicious cycle of declines and redemptions from funds because liquidity is stable near month-end, according to a front-page article in the Securities Times.
  • PBOC Net withdrawal CNY208.4bn via OMO this morning.
  • Bonds very quiet with only volumes seen in the 10-year government bond.

2yr 1.524% 5yr 1.848% 10yr 2.171% (-1bp) 30yr 2.356%

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