Treasury yields are higher as China turns on the taps but makes a questionable connection

There is renewed vigor in China from today's shift in monetary and fiscal policy tone but the Financial market is not fully accepting it. Yields are up 2-3 bps across the curve and that's despite several auctions on the dock this week.

Now some of that may reflect the current reality after China's CPI today numbers both were lower than expected. So while inspiration may be coming, talk is free and the October inspiration from China was somewhat difficult. We will know more at this week's Working Conference but there is more skepticism in the bond market than we see in AUD/USD, for example.

That said, I will be watching how China ETFs listed as MCHI are doing today. It is up 6.8% in the premarket.