China: Time to take some profits?

China's central bank appears to be gradually nudging rates back up in reaction to criticism about excessive lending growth.

“The central bank is using the gradual increase in yields to alert the market to prepare for a tighter policy in the future,” said Liu Jianyan, a fixed-income analyst at First Capital Securities Co. in Shenzhen. “But there won’t be a drastic reversal of previous loose monetary policy.”

Take some profits off the table on strength and look to get back in on a pullback.