Skip to content

More on China

Written by

MikeMcD82

Following up on my comment from early this morning, Uncertainty of Chinese Tightening Continues to Weigh on Asian Markets, I wanted to mention that, surprisingly, the Chinese central bank, during its regularly scheduled Tuesday auction, did not increase the yield on its one-year paper, keeping it constant at 1.9264%. It is widely expected that once this yield reaches 2.25% — the current deposit rate — a Chinese rate hike is inevitable.

This pause may imply that government officials believe a hike in the reserve requirement ratio and other policies have been effective, and investors may be able to take a short breath prior to an eventual Chinese rate hike. The next regularly scheduled auction will be on Thursday.

Previous article

Uncertainty of Chinese Tightening Continues to Weigh on Asian Markets

Next article

An Ominous Sign From the Philly Fed

Join the discussion

Leave a Reply

Your email address will not be published. Required fields are marked *