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Chinese rates continue to be............>

CHINA RATES
CHINA RATES: Chinese rates continue to be pressured by the drop in local
equities which is increasing expectations that the PBOC will favour short-term
growth stimulus over long-term deleveraging and financial stability. 
- Over the past 6 months the 2-year swap and CSI300 have moved in lockstep and
rates have further to drop if the historical trend remains intact.  
- Such a scenario creates the risk of a bullish break toward 7.0 in USDCNH,
which would put Chinese policymakers in a difficult spot. 

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