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BOND SUMMARY

EGB/Gilt - Attention turns to the FOMC

EMERGING MARKETS

CZKPLN Approaching Key Resistance at 0.18

US TSY OPTIONS

Range in Underlying Spurring Vol Sales

USD

Extends gains against the Pound and EUR

CHINA PRESS
CHINA PRESS: China is clamping down on the use of local government funding
vehicles (LGFVs), the 21st Century Business Herald reported Monday. The central
government is enforcing debt swaps or separating LGFVs to independent companies
to reveal invisible debt held by local authorities. The process of regulating
LGFVs is slow and difficult given its ties to the local economies and that it
gets implicit guarantee from local government, it said. 
***COMMENT: LGFVS were was created to help local meet targets. Local officials
are pressured by evaluations from central government. So the irregularities
presented by LGFVs can't be eliminated without overhauling the fiscal structure.
These on-again and off-again approaches won't resolve the issue.