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Curve Bull Steepens

CHINA RATES

The CGB curve has bull steepened during the Chinese morning, with 2s running ~5bp richer on the day, while 10s and 30s are little changed. Note that the previously detailed MLF-related inaction from the PBoC (a mere rollover of maturing MLF funds and no rate cut) provided some brief and relatively limited cheapening impetus, with the continued focus on the potential for an after-market PBoC RRR cut ultimately underpinning the space thereafter.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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