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CHINA: USDCNH trades roughly where it began the day after an early drop,
potentially triggered by ab Axios report regarding a potential Xi-Trump meeting
next month, was erased. The pair sits off daily highs though last at 6.7800.
EURCNH managed to hit a new cycle low in early trading before recovering some
- The yuan has found little support from rate markets with swaps resuming their
downward trend and 10 year bond futures gaining 32.5bps to bring the Jan highs
within touching distance.
- The bond market continues to shrug off equity gains with local stocks up
between 1-3% on the day as small caps outperform.