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USDCNH has edged back below 6.94.........>

CHINA YUAN
CHINA YUAN: USDCNH has edged back below 6.94 despite a slight rise above it
earlier.
- This comes as Chinese stocks open strong and US equity futures remain under
pressure, which has helped narrow interest rate differentials between the two
countries. 
- China's 2-year swaps trade up 3bps versus a -0.2bps drop for US swaps, which
has seen the spread narrow to 20.9bps. However, with US inflation expectations
recently dipping on equity weakness, real yield pressures remain yuan negative. 
- The Axios report over the weekend that Trump has no intention of easing his
tariffs on China is not really impacting the pair as US stocks are taking the
brunt of the news. 

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