Rev. Repo Rate Cut & Easing Exp. See Chinese Rates Back To Pre-ZCS Removal Levels

USD/CNH briefly looked through the uptrend channel that we have flagged on numerous occasions in recent days, registering a fresh YtD high in the process, before pulling back to last print a touch higher on the day at CNH7.1630.

• Mainland equities managed to rally at an index level (CSI 300 +0.5% at the close), on the back of the already deployed/expectations surrounding further policy easing, although the recent marginal net selling bias via the HK Stock Connect mechanism remained intact for a third straight day.
• Benchmark 10-Year Year CGB yields eased by 6bp, while 5-Year NDIRS rates showed below 2.40%, as pre-ZCS removal levels came into play (we had previously pointed to the need for a more notable easing bias from the PBoC to facilitate such a move).