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Yuan swaps are having a strong day......>

CHINA RATES
CHINA RATES: Yuan swaps are having a strong day with the 2-year rising 6 bps
back to 2.92%. A break above last Tuesday's high at 2.98% would suggest a
bottoming process is playing out. 
- With US swaps having edged lower in recent weeks, China-US 2-year spreads have
risen to 11.2bps from a low of -15.0bps on August 6, helping to support the yuan
and stocks.
- The correlation between Chinese stocks, USDCNH, and Chinese rates is elevated
once again and this seems likely to continue for reasons we outlined in last
Friday's 'China Money Week: China At Policy Crossroads In Trade Spat'.

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