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USDCNH trades flat today at 6.8018,......>

CHINA YUAN
CHINA YUAN: USDCNH trades flat today at 6.8018, still shy of Friday's high of
6.8098. EURCNH met resistance at its Dec lows, keeping the focus on the 7.70
level, below which would confirm a head and shoulders topping pattern.  
- Rate markets are showing some upward pressure but the US short end yield
advantage remains near cycle highs. The ongoing recovery in oil prices is also a
slight negative for the yuan given its reliance on energy imports, while the
PBOC's increasingly loose fiscal stance is an additional headwind. A Bloomberg
report yesterday noted that China is planning to allow provincial authorities to
sell 2.15 trillion yuan ($317 billion) of special bonds in 2019, an increase of
almost 60% y/y.

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