the top or that is -- talk through that is david finnerty. with the dollars supported by climbing treasury yields and economic woes seemingly worsening by the day, it seems the yuan bears will remain firmly in control. >> risks are skewed towards yuan weakening in the near-term. it's not just that, the dollar has been rallying against every currency. but the worry is the pboc is near its 20-year lows. not an official line in the sand but the market will be very wary of that. if you want weakens past that level, will stops be triggered? if they do, that will add to downside. markets worry about chinese state bank selling the dollar ahead of those levels but at the moment risks are skewed. that dollar yuan will head towards this 7.37 handle which the market has its eye on. lizzy: as u.s. rates bushfire, the dollar strengthens broadly, and concerns about china spill over. the yen has slumped to a 2020 very low and has traded at levels that have previously triggered japan's intervention. can we expect verbal intervention from japanese officials?

lizzy: thank you to david finnerty there. jill, let me bring you and. how significant is it that this property crisis in china seems to be spreading from the private sector to the public sector? jill: the important thing to keep in mind here as we are reviewing corporate filings for 18 of 38 state-owned builders were reporting preliminary losses through the first six months of 2023, up from 11 of these companies listed in hong kong and mainland that were reporting full year losses at the end of 2022. this is telling us that the state builders are not immune from the ongoing property crisis that is coming at the same time we are on default watch for country garden, one of the nations largest property developers. evergrande defaulted a couple of years ago and it is also declaring chapter 15 bankruptcy in new york trying to protect itself from creditors as it is trying to work through potential restructuring plans. all of this comes together to show you that a property crisis that not only has been going on for the past couple of years but also is not show

david: david finnerty, thank you so much, are fx and rates strategist. 1.0635 is the may 31 intradayn that. u.s. commerce secretary gina raimondo is in china, continuing her visit in the capital. trying to say that the trade between the two countries has nothing to do with national security and it is possible to promote and protect exports at the same time. >> we agree to establish a new commercial issues working group, a formal working group which will involve u.s. and chinese government officials. very important on u.s. and chinese commercial company representatives as we seek to resolve trade issues and continue u.s. investment in china. rishaad: chinese, secretary wang wentao also spoke. let's bring in william mccahill. he had a 25 year in the u.s. foreign service. welcome to the program. raimondo is doing the talk about the walk seems to be entirely different bid are the chinese likely to buy this? william: it is a lot of same old, same old. we were doing new working groups back in the late 1990's, and in fact, that set up a whole labyrinth of consultations on various kinds of t

rishaad: always a pleasure, david finnerty there. great to see you. is this a change in thinking by investors overall, or is this ultimately a market structure story, what is happening right now? >> i did not hear the first part of your question. rishaad: i am talking about the way we have this information we digested and is there a change in sentiment, i.e. what is being priced in now when it comes to bonds and equities? mikio: the fitch downgraded yesterday, it was sorting building up a little bit of a risk-off sentiment in recent days. but the trigger was perhaps offered by the fitch downgraded which was somewhat unexpected. i would not read too much into it. i think we had a very good run in the first half of the year, led by not more than a dozen stocks. now investors realize there are still issues that are not unresolved, and the fitch downgraded was a good reminder. that said, yeah, i don't think we have a major regime change. i think this, too, shall pass. rishaad: so what happens next? it seems the narrative is changing not to when will inter

let's pick the brain of the master and bring in david finnerty, rates strategists who talk us through we talk about intervention whenever we see 144 or 146. are we thinking straight though david? david: no based off history, there has been intervention before but you can expect verbal intervention. whether there actual intervention itself is wait and see. certainly, we are in that territory where you start to get the verbal rhetoric going we are worried about one-sided moves and stuff. so, historically, this is an area that the market is concerned about because of intervention. if you look at volatility and dollar-yen you are seeing that rise on exactly that worry. you could see whether verbal or actual intervention, the market is jittery about it and option pricing has risen as well because that is factored in. yvonne: how much higher to using the dollar go? david: it's interesting question. it depends on what u.s. yields do. if they push higher, the risks are skewed towards advancing. having said that, it is how high will it be allowed to go before there is intervention? it's really