Turning to Asia, the news flow from China has been fairly mixed overnight but the price action is more unambiguous with falls in the Shanghai Copper futures (-0.9%), HSCEI (-0.9%) and Hang Seng (-1.3%). The latter has been weighed by a sharp fall in Tencent (-5.1%) one of the world's largest internet companies, on reports that the PBoC has called for a halt to virtual credit cards operated by the company. China worries have also sent Australian mining stocks down 2.3% and the Nikkei is down 3.4% with all industry sectors suffering >2% falls. S&P500 futures (+0.1%) are slightly firmer though and us treasury yields are trading flat in Asian trading following yesterday's 9bp move lower. In domestic Chinese equities, banks are leading the markets losses as concerns over corporate defaults continue to weigh on the sector. on the topic of potential defaults, Chinese equipment-maker Boading Tianwei, who generated headlines earlier this week as a potential second default in china's domestic bond sector, released a statement saying that it will be meeting its coupon payment obligations on July 11th this year. The bonds are guaranteed by the company's central-government-linked shareholder. The bonds remain suspended from trading though. There was also news that trust products linked to shanghai chaori (the first domestic corporate bond issuer to default last week) have been "paid off" by Zhongrong International Trust co, suggesting that maybe the trust product's investors may have been able to recover a substantial amount of their investment (shanghai Securities News). On the topic of china, our commodities research team writes that fears of Chinese commodity finance deals could unravel and result in widespread metals liquidation might be overdone. In their view, the recent sell-off in copper prices has been primarily driven by speculators trying to anticipate the unwinding of financing deals, rather than actual widespread unwinding itself. According