Renminbi

Chinese Reserves Tumble By $69 Billion, Biggest Drop Since January

Overnigt China disclosed that, as expected, FX reserve liquidation has spiked with reserves falling by nearly $70 billion last month as the country’s central bank burned through more of its reserves in the fight to defend the renminbi from greater depreciation on the back of accelerating capital outflows. This was the largest decline since January.

Mugabe's "Last Gamble" - Zimbabwe Unleashes Newly-Printed 'Bond Notes' Pegged To The Dollar

One might think that after 92 years, some wisdom may have leaked into the brain of Zimbabwean president Robert Mugabe. But no. As the world's oldest head of state, he has overseen the demise from a post-colonial success to a pariah state wrecked by hyperinflation. However, having apparently learned no lesson from his prior experiences, The Reserve Bank of Zimbabwe has decided to print a new national currency for the first time since 2009.

Brace For A Year Of "Peak Everything, Big Rotations" - Here Is BofA's Guide How To Trade It

1) Peak Liquidity: era of excess liquidity is over; 2) Peak Inequality: more fiscal stimulus to address inequality; 3) Peak Globalization: free movement of trade, labor, capital ending; FX wars starting; 4) Peak Deflation: low point in bond yields now behind us; 5) Trough Volatility: era of “flash volatility” and “pain trades” continues; 6) Peak Passive: active investors to outperform passive; 7) Transforming World: robotics, eCommerce constrain inflation upside

Yuan Smashes Through 6.90... What Next?

While the Renminbi basket (Chinese currency basket relative to biggest world trade partners' currencies) has been 'stable' for almost 5 months, the catchdown in the Yuan's purchasing power against the US Dollar is accelerating rapidly. Busting through 6.90/$ in early Asian trading, the last time offshore Yuan cratered this quickly, stocks plunged in January. The question is - how much further can the Yuan fall before the Trump bump gets damaged?

Bond Bloodbath Becomes Buying-Panic As Treasury Yields Tumble Most Since June

After 3 days of carnage in US Treasuries, pushing longer-dated bond yields notably above US equity dividend yield - and following both Citi and Goldman reports that Trumponomics may be less inflationary than expected (and the yield surge is tightening financial conditions) drastically, longer-dated bond yields are dropping notably in the early Asia session. 10Y yields are down 8bps - the most since June as 30Y drops back below 3.00%.

China: Trump's First Crisis?

There is a growing possibility that China will be at the epicentre of President-elect Trump’s first crisis, triggered by concerns over the potential impact of protectionist measures on China’s trade surplus, which currently supports the increasingly fragile financing chains supporting corporate debt that the IMF estimates at around 155% of GDP.

Markets In Turmoil: Global Bond Bloodbath, Currency Rout Accelerates As Stocks Erase Early Gains

Monday started off where Friday left off, with the dollar surge continuing, pushing the DXY above 100 for the first time since December, global bond yields soaring, emerging market currencies tumbling, and the Yuan slammed below 6.85 for the first time. However, where Monday is different is that while European stocks and US index futures started off far higher, E-minis have now faded the entire overnight rally and are now red for the session, on concerns that the spike in yields will cap any more stock upside.

One Hedge Fund's Warning: "What’s Good For The US In This Case, Is Not Good For Emerging Markets"

"To be bullish on emerging markets at this stage is to disregard the adverse dollar and interest rate environment, and build your investment thesis on the expectation that China will sustain the largest credit expansion in modern economic history." Most investors viscerally understand this, particularly within China, where capital outflows just hit new highs for the year - weakening the renminbi. "Historically, emerging markets have done well when global growth has been robust. But the world is changing."