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Chinese 10-year bond futures are back...>

CHINA RATES
CHINA RATES: Chinese 10-year bond futures are back on the front foot today,
decoupling from the move lower in US Tsy futures and holding gains despite a
recovery in local stocks. The contract trades at 96.95, up 20 pips on the day.
The 10-year yield has dropped 1.3bps to 3.380%, taking the China-US spread down
to 30.2bps.
- 2-year swaps continue to trade around the 2.8% level, with bears looking for a
close below 2.78% to confirm a break below up trendline support from the August
lows. 
- CDS markets are feeling the contagion from rising US corporate bond spreads,
with the 5-year tenor trading at 73.5bps, its highest level since June 2017. 

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