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

CHINA RATES
CHINA RATES: China's 10 year bond futures are off 33 ticks today just above the
lows seen on Dec 7 and approaching the 21-dma. Below here would suggest a
bearish reversal and point to further shift higher in yields implying that
further easing may not be forthcoming. 
- Despite growing calls for further rate or RRR cuts, rate markets appear to be
forming a base. The 2-year is up 4.5bps today while the 10-year is up 5bps as
recent curve flattening comes to an end for now. The failure of the 2-year to
follow the 10-year to new lows last week hints at a bullish divergence.  

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