It feels like October again, with Asia rates largely shrugging off the renewed wave of higher US rates. There remain strong local reasons for us to stick with our general preference to receive rates and buy bonds. For instance, while rate hikes have finally been priced out of China’s curves, we still see room for a further rally as credit growth slows. Moreover, with the policy push to control local government debt, regulate property market risks, curb monopolistic behaviour and pursue green goals in 2021, there appear to be more downside risks, than upside, to the consensus view that China will deliver very strong economic growth this year. With this in mind, we retain our buy 30yr government bond and 2yr bond-swap spread tightener in China.