US 10s, daily
There is a reflationary impulse from China from today's shift in tone on monetary and fiscal policy but the Treasury market isn't fully embracing it. Yields are up 2-3 bps across the curve and that's despite several auctions on the docket this week.
Now some of that may reflect the current reality after today's China CPI numbers were both lower than expected. So while stimulus might be coming, talk is cheap and the October stimulus from China was something of a dud. We will know more at this week's Work Conference but there is more skepticism in the bond market than we're seeing in AUD/USD, for instance.
That said, I'll be watching how US-listed China ETFs like MCHI do today. It's up 6.8% in the pre-market.
