People's Bank Of China

When A "Black Swan" Will No Longer Do: China Warns Beware The "Gray Rhino"

In surprisingly stark commentary, China issued a warning that the economy finds itself in a backdrop of growing enterprise debt, an overheating real estate market, and overcapacity in such sectors as low-end manufacturing, and cautioned investors that a "gray rhino" may be coming.

Global Stocks Rise As Oil Rebounds; Yuan Soars

S&P futures are little changed this morning, while Asian shares rise and European stocks (+0.5%) are poised to snap a five-day losing streak amid a broad-based rally. The pound declined as better-than-expected manufacturing data failed to offset political risk before the impending election, while crude oil gained.

What Is Causing China's Yield Curves To Invert: UBS Answers

The inverted curve reflects a contradiction between market expectations on policies and economic fundamentals. On one hand, the slowdown of economic growth may prevent the back end of the yield curve from further going up. On the other hand, financial institutions' funding costs have kept rising but the financing costs for the real economy measured by loan rates have not risen that much.

China Eases Capital Controls As Dollar Weakens

China's central bank has relaxed some of the curbs on cross-border capital outflows it put in place just months ago to shore up the yuan currency. As of last week, the PBOC is no longer demanding that banks match outflows with equal inflows

Beijing Responds To Trump Charge China Is A "Grand Champion At Currency Manipulation"

"China has no intention of seeking foreign trade advantages via an intentional devaluation of the renminbi. There is no basis for the continued devaluation of the renminbi" but "If you must attach the label 'grand champion' to China, then I think China is a grand champion. But we are the grand champions of economic development."

Chinese Banks Begin To Raise Mortgage Rates

In the latest tightening in China's financial conditions, the China Securities Journal reports that some bank branches in Beijing, Guangzhou and Chongqing have raised mortgage rates for first-home buyers recently.

US Futures Rise Ahead Of Payrolls Following A Surprise-Filled Asian Session

European stocks and S&P futures rose modestly ahead of January US payrolls data, along with the dollar, while Asian shares dropped after China returned from a week-long holiday. Bonds slid, oil rose while the JGB intervened in the bond market to prevent a bond rout, in one of two major surprises during the Asian session.

Chinese 10Y Bond Yields Set For Biggest Monthly Jump Since 2010

China's surprise increase in interest rates on medium-term loans weighed on bond prices on Wednesday, hammering bond prices, sending benchmark 10-year treasury futures sharply lower and pushing 10 Year yields up by 6 bps, making the January move higher in yields the biggest jump since October 2010.

To "Prevent Public Panic", Beijing Orders Banks To Keep Capital Controls Secret

"You must control your forex deficit, but you can't say that SAFE is controlling capital outflows," a high-ranking government official told Chinese bankers. The banks were told to "manage sentiment" to prevent public panic, the banker said, and the banks' research analysts should not broadcast any negative views on the yuan.