Total Derivatives: Shorts bid; Scope for CNY flattening

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Total Derivatives: Shorts bid; Scope for CNY flattening

china dragon px230

China has been buying negative-yielding JPY bills to profit from using USD/JPY basis swaps. Short NDIRS have been bid. The curve is flattening and sources see scope for it to flatten further before 1s/10s meets resistance around the 35bp level.

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