The PBOC FX intervention team continue to be busy in offshore Yuan this week as for the 4th time in 3 days, a mysterious panic-buyer lifted CNH between 5 and 10 handles higher for no good reason other than to show George Soros (and Bill Ackman) who is boss (i.e. drive away the shorts). In keeping with the recent “stability” the Yuan fix was flat but another 340bn Yuan was injected – except China CDS pushes to Aug 2015 wides indicating severe stress and suggesting devaluation looms.
Offshore Yuan in all its manipulated glory…It would appear 6.61 is the number to bet against!!
Stability… or is it artificial (as CDS signals anything but)
But more liquidity…
- *PBOC TO INJECT 340B YUAN WITH REVERSE REPOS: TRADERS
- *PBOC TO INJECT 260B YUAN WITH 28-DAY REVERSE REPOS: TRADER
- *PBOC TO INJECT 80B YUAN WITH 7-DAY REVERSE REPOS: TRADER
We look forward to the post China New Year unwind of all that liquidity.
You can only hold the big balloon under water for so long…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1nzskd9 Tyler Durden