Ahmmm, the release of the peg will allow the Yuan to Appreciate against the Dollar not Depreciate (devaluation) as the title of this thread suggests. That's why other Asian currencies will probably rise vs. the dollar as this helps exports TO China. U.S. markets are rising because that makes U.S. products more competetive and Chinese products more expensive. U.S. bond markets may take a hit as this is an economic stimulus event, thus prospects for higher interest rates. I'm not a currency trader but I thought everyone who does trade currencies understood these relationships.