• Last week’s nosediving bond yields might have been the proverbial false move. That, or markets have shedded their growth worries after last Friday’s reserve ratio requirement cut by the PBOC.
  • At pixel time US Treasury yields were rising across a bear-steepening curve. With the 10y at 1.37, half of last week’s declines have been erased.
  • Asian equities are higher this morning, taking their cue from another record-high close for the S&P 500 yesterday (and ahead of earnings season). Leading the gains are Hong Kong listed tech shares. The wires are attributing that to reports that Chinese tech giant Tencent received regulators’ approval to buy a search engine developer.
  • In FX the dollar is shedding some of its recent gains. Note that the summer rally has propelled the greenback back into the green for the year (up 2.6% against the majors and 2% against EM FX).


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