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EGB/Gilt - Attention turns to the FOMC

CHINA: The debt ratios of SOEs and local governments need to be closely watched,
Li Yang, a senior researcher with the Chinese Academy of Social Science and
advisor to China's leadership, said in a forum at the Renmin University on
Sunday. With China experiencing lower rates of growth, excess production
capacity and a difficult investment environment, rising leverage ratio, heavier
debt burdens and increasing non-performing loans are posing more risks, Li said.
China's financial system is marked by borrowers need to continue refinance their
loans given the lack of long-term financing options, not by capital shortage, Li
said. China should boost the use of equity in its capital market and establish
long-term credit institutions, Li said.