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Bonds Find a Bid as China Levels Sanctions on Lockheed Martin, Raytheon

CROSS ASSET
  • Treasuries and Bund futures find a small bid on the back of reports citing the Chinese commerce ministry, who are levelling sanctions against US arms firms Raytheon and Lockheed Martin due to arms sales to Taiwan. Lockheed Martin and Raytheon will now be barred from importing and exporting to China.
  • Bund futures added just over 20 ticks in response, rising above the 135.00 handle to hit new daily highs. In tandem, JPY gains modestly, putting USD/JPY back toward the earlier European morning lows of 133.61.

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