Total Derivatives: Yuan concerns drive short CNY paying

GlobalCapital

August 31, 2015 08:15 am

worried traders — Stock traders checks out a graph showing activity of US interest rates over one year in a business bank, in Paris, Monday, Dec. 12, 2011. Enthusiasm for riskier assets such as stocks and the euro faded Monday as investors worried that Europe's new pact aimed at fixing the continent's debt crisis would be insufficient. (AP Photo/Michel Euler) | Michel Euler/AP/Press Association Images

Although Chinese equities are selling-off again today short-end CNY swaps have been better bid on underlying concerns about a gradual yuan depreciation trend. Elsewhere traders expect to see the curve steepen as corrective strength in equities supports paying in mid-sector swaps, writes Deirdre Yeung of Total Derivatives.

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