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MARKET INSIGHT

Price Signal Summary - Evening Star Reversal In Gilts?

EGB OPTIONS

Bund put spread buyer

EURIBOR OPTIONS

Put spread bought again

CHINA
CHINA: Chinese stocks are down on the day giving back some of yesterday's gains
but the 3200 level is holding for now on the CSI300, while the Chinext is
consolidating yesterday's bullish breakout. The Hang Seng is underperforming
having failed to recover the 26000 level despite a solid open, which has seen
the index fall back to 25700. MSCI noted yesterday that the trade war has not
impacted China's equity market liberalisation which continues apace, supporting
our view of outperformance versus the US.
- The weakness in equity markets has helped the 10-year government bond yield
fall another 4bps today, currently trading at 3.443%, its lowest level since the
July 20 bottom. Swaps markets are also edging lower with the 2s-10s spread
seeing some bear flattening. 
- USDCNH is trading back up through 6.95, last at 6.9514 following the bounce
off the Nov 7 highs earlier today, which keeps the bigger picture bullish trend
intact.