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USDCNH is little changed after the PBOC's.....>

CHINA
CHINA: USDCNH is little changed after the PBOC's fix, with the pair trading at
6.8531 as the range remains intact. EURCNH is trading at 8.0100 as bulls
struggle to cling to gains above the crucial 8.0 level.
- A number of factors are pointing towards yuan strength, such as the sharp drop
in USDCNY implied volatility, with the 1-month now trading at two-month lows,
suggesting that risk-appetite is returning to the currency.
- There has been a sharp rise in Chinese interest rate swaps today too, with the
2-year up a further 2.5bps to trade at two-month highs of 3.0150%. Equity gains
have placed upward pressure on yields while comments today from Economic
Information Daily that monetary policy should not be regarded as powerful a tool
as before may have helped out.
- China-US 2-year swap spread now back to 4.7bps from zero yesterday.  

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