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China's 10 year bond futures are........>

CHINA RATES
CHINA RATES: China's 10 year bond futures are extending their sell off, dropping
another 10 ticks today to test their 21-dma. Cash yields are also up 2bps while
the swap curve has extended its rise to four consecutive days. The 10 year is
looking to break back above the 3.05 level. 
- PBOC is reportedly working to push for merging the benchmark lending rate with
the borrowing cost of the 7-day reverse repurchase agreement, a step that could
guide cheaper funding to the real economy. 
- Yesterday's slight rise in rates amid growth coming in in line with
expectations lends more weight to our view that bearish expectations surrounding
China's growth rate and PBOC easing create upside risks for bond yields. 

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