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Chinese swap rates are rising across....>

CHINA RATES
CHINA RATES: Chinese swap rates are rising across the board today with the
2-year yield up 3bps to 2.98%, having risen to its highest level since July. A
bullish reversal pattern appears to be playing out which is in line with a view
we put out a few weeks ago (see 'CHINA MONEY WEEK: Upside Risks For China Market
Rates', Aug 17).
- The rate rise continues to contrast with the ongoing weakness in the yuan,
with the 21-day rolling correlation now at 0.43 down from a peak of 0.96 in
July. Rising US yields continue to keep China-US spreads minimal, preventing
rising Chinese yields from benefitting the yuan. 

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