China's 10 year bond future has broken........>

CHINA: China's 10 year bond future has broken below range lows, losing 16 ticks

on the day to trigger a potential bearish reversal pattern. The move comes amid

a resurgence in risk appetite towards China stocks, with the HSI extending its

daily gain to 2%. A close here would trigger a bullish break above downtrend

resistance. 

- Cash yields are also up 2bps but interest rate swaps have not followed suit,

with the 2-year down marginally on the day.

- Policymakers pledged to increase policy flexibility and stressed that prudent

does not necessarily mean there will be no changes, potentially hinting at

further easing. 

- The rise in bond yields and ongoing strength in the yuan suggest further

easing is already priced in.