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Chinese rate markets have extended their......>

CHINA
CHINA: Chinese rate markets have extended their rise, with 2-year swaps up
5.5bps on the day, breaking back above their 21-dma and targeting the key 2.8%
level. The 10-year meanwhile has broken back above 3.2%, up bps on the day. 
- The rally in the face of still-low oil prices and declining breakeven
inflation expectations globally suggests traders are winding back their bets on
PBOC easing amid the recovery in the equity market. 
- USDCNH is trading in a tight range after yesterday's large drop, albeit within
a broader topping pattern. Comments today by SAFE officials that the yuan will
remain stable are unlikely to prevent a further drift lower in the pair should
upside rate pressures continue. 

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