Tuesday FX Interest Rate Monitor

Bond prices responded to flexing Asian equity markets on the prospect of a rethink by China on its restrictive policies now the pace of expansion has moderated. However, equity index futures buckled on disappointing earnings headlines from Goldman Sachs whose numbers look worse thanks to a recent SEC fine and British banking tax. Bonds have since regained their upward move as equity prices weaken while a sliver of optimism was to be found in a construction report reflecting an increase in the number of building permits.

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