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Chinese bond futures are on the front...>

CHINA RATES
CHINA RATES: Chinese bond futures are on the front foot again with the 10-year
up 24.5 ticks to trade at 97.36, just shy of the Dec 5 highs. The arrest of
Huawei CFO on Sunday further complicates the delicate US-China trade truce
raising the prospect that the PBOC engages in further easing. 
- 10-year cash yields trade down 3bps at 3.282%, falling to fresh ytd lows. 
- Swap markets are following suit, with the curve 3-4bps lower last. 2-year
trades at 2.7125%, closing in on the Aug lows. 
- The current stability in the yuan amid weakness in Chinese stocks provides a
window of opportunity for the PBOC to ease, particularly as the US Fed has taken
its foot off the gas regarding its hiking cycle.  

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