 Threat of US-China trade war escalation receded last week after both sides offered some concessions. Further than that, there is increasing hope of de-escalation of some form as the idea of an "interim" trade deal floated around. Both sides seemed to be communicating well in preparation for the meeting in October. There is prospect for US to roll back some imposed tariffs if China could offer some commitment regarding intellectual property protection and agricultural purchases. The return of risk appetite could be well seen in the rebound in major treasury yields. German 10-year yield jumped from -0.634 to close to 0.445, comparing to -0.739 record low made earlier this month. Japan 10-year JGB yield also jumped from -0.245 to -0.155, comparing to this month's low at -0.285. Yen ended as the weakest one, followed by Canadian Dollar. Sterling was the strongest as it's looks more likely that no-deal Brexit could be averted on October 31. Australian Dollar was the second strongest on risk appetite. | 
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