Let's head back to China now, where in another move forward for China's futures markets, 2-year treasury features began trading today on the China Financial Futures Exchange. The benchmark futures for December delivery opened 4-basis points higher at 99.4 and were last seen trading flat. China's securities regulator says the 2-year treasury futures help to diversify investor portfolios, improve the yield curve and deepens interest rate reforms. The regulator also said the new product can improve liquidity in treasury futures and help investors hedge against risks of rate fluctuations. Chen Tong reports.

The sound of a gong, launched trading for the two-year sovereign bond futures this morning. Three types of contracts were launched at the same time, the bond in the first selling for 99.4 yuan. China has had five-year and ten-year sovereign bond futures since 2013, but the two-year sovereign bond future launched today offers a higher face value.

DR. NIU GUANGZE BOND DEPT., CHINA FINANCIAL FUTURES EXCHANGE "The face value of the previous sovereign bond futures contracts was one million, but the new type costs two million. At the same time, the delivery period for this bond is between 1.5 years and 2.25 years, shorter than the other products. At the same time, the two-year sovereign bond futures are more stable, so the trading range is within 0.5 percent."

Brokerages and funds are the major investors in sovereign bond futures. While the new issue provides a more liquid product for investors, the launch of the two-year bond futures is also expected to optimize the product structure of Chinese government bonds and increase liquidity in the bond market.

JIMMY ZHU, CHIEF STRATEGIST FULLERTON MARKETS "Before the two-year bond market launched, lots of players in the market used the interest rate swap especially the one-year interest swap to hedge liquidity risk. So now given the two-year bond futures actually now in the market. People can use more sophisticated trading strategy to play the yield curve this kind of things."

Deputy chairman of the China Securities Regulatory Commission Fang Xinghai said during the opening ceremony today that 30-year sovereign bond futures are also expected to launch soon. With more types of futures products coming onto the market, China's interest rate liberalization is also expected to speed up.