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  • CNY swaps have been better bid as the International Monetary Fund's upgraded economic outlook for China has more than offset the post-holiday improvement in liquidity conditions. Hong Kong dollar swaps also picked up a bid as the market responded to the Occupy Central pro-democracy protests, writes Deirdre Yeung of Total Derivatives.
  • Market participants have been trading very short-dated options on the euro against the dollar in a bid to hedge other cash positions that they still have on the currency pair.
  • We remarked last week that volatility had returned to the credit markets, and the spread oscillations this week suggests the trend is set to continue.
  • Hedge funds have been selling volatility in the old series of iTraxx Main and Crossover, mostly with November and December expiries, after the iTraxx indices roll from series 21 to 22 that took place on Monday.
  • The head of rates and solutions structuring at Nomura in London is set to leave the firm after being put "at risk".
  • THEAM, a €40bn asset management division of BNP Paribas, plans to buy a nine-month put butterfly on the euro against the dollar to express a bullish dollar position in the coming weeks.