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Chinese Rates Spike Most In 5 Months To Record High

Tyler Durden's picture





 

As the US equity market embraces the suck of taper, the Chinese interest rate market seems a little upset. 1-Year rate swap just spiked their most in 5 months (16bps) to an all-time high 5.065% (above the June Taper Tantrum levels). Following its enforcement actions on Bitcoin last night (and coincident DDoS attack on its website), the PBOC has decided not to inject liquidity into Chinese banks today

  • *PBOC WON'T LIKELY CONDUCT REPO OPERATIONS TODAY: TRADER

Add to that the fact that the Indonesia Rupiah just dropped to its lowest in 5 years and we suspect more than little turmoiling this evening as the rest of the world figures out why taper is risk-on.

 

Bloomberg also reports, 7-day repo rate dropped 24bps to 6.06% after rising 153bps yesterday

 

 


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Wed, 12/18/2013 - 21:48 | Link to Comment frankTHE COIN
frankTHE COIN's picture

YelloBernaked had the Plunge Protection Team in place for the FOMC Action. Getting Every Major Participant on- board is a different story.

Wed, 12/18/2013 - 21:52 | Link to Comment LetThemEatRand
LetThemEatRand's picture

That brings to mind a tune by the Bernaked Ladies.  If I had a trillion dollars.

Wed, 12/18/2013 - 21:49 | Link to Comment LetThemEatRand
LetThemEatRand's picture

The Bernanke may be the wizard, but he only has so many fingers and toes for the dyke, er, I mean the dike.

Wed, 12/18/2013 - 22:30 | Link to Comment putaipan
putaipan's picture

thanks loads rand ... i just visualized a really horrible image of the bernanke yellen transition.

Wed, 12/18/2013 - 22:39 | Link to Comment LetThemEatRand
LetThemEatRand's picture

It's cool, though.  The Squid has her backside.

Wed, 12/18/2013 - 22:51 | Link to Comment Al Huxley
Al Huxley's picture

Oh, my eyes!  It just gets worse and worse!

Wed, 12/18/2013 - 21:57 | Link to Comment Al Huxley
Al Huxley's picture

Aren't we due for a bitcoin update post?  It's 522 now, with Asia just opening, that might be an interesting topic to stir some shit up.

Wed, 12/18/2013 - 21:59 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Shit, I think you just said fonestarjuice three times.  

Wed, 12/18/2013 - 22:10 | Link to Comment joego1
joego1's picture

Bitcoin is like the dog that gets kicked when the bankers get frustrated.

Wed, 12/18/2013 - 22:12 | Link to Comment Al Huxley
Al Huxley's picture

Have you looked at the charts of ALL the major indices today, or NOW?  Does it look like the bankers are frustrated?  They're all out popping 10k bottles of champagne, snorting coke off the finest hookers' tits and asses, they don't have time to waste fucking around with bitcoin at times like these.

Wed, 12/18/2013 - 22:45 | Link to Comment Zero Point
Zero Point's picture

700 was a buy apparently.

Back to the knife catching class.

Wed, 12/18/2013 - 22:00 | Link to Comment Al Huxley
Al Huxley's picture

But on topic here, Nikkei looks poised to soar to new highs, and Shanghai's ready to bound off the bottom of the channel - thus proving to the world the timeless wisdom of buying stocks, everywhere and anywhere, especially when the FED tapers.

Wed, 12/18/2013 - 22:16 | Link to Comment fonzannoon
fonzannoon's picture

I wonder if we are on the verge of a nikkei type pop in the S&P to well over 2k/

Wed, 12/18/2013 - 22:25 | Link to Comment Al Huxley
Al Huxley's picture

I think they're going to go 'super-vertical' into the new year, at least into mid January.  On the plus side, my miners' portfolio's finally showing green!

Wed, 12/18/2013 - 22:29 | Link to Comment fonzannoon
fonzannoon's picture

Now just imagine the dirty feeling of taking those gains on shorting the miners and using it to buy phyzz. You will get used to it eventually

Wed, 12/18/2013 - 22:33 | Link to Comment Al Huxley
Al Huxley's picture

I'm REALLY looking forward to it - its funny, but suddenly Jeffery Christian, Dennis Gartman, etc. are my favorite analysts.

Wed, 12/18/2013 - 22:21 | Link to Comment chump666
chump666's picture

China could f*Ck the yield curve sideways  WTF is Gross waffling on about, soon end of QE, rates remaining low to 2016 till 6.5% unemployment rate drops.  None of that means sh*t if the USD is selling below 80 and the oil price is over 100.  Simple.

Oh and China is losing control of everything, that will be at war with Japan next year.  Everything will blow up.

Meantime ride out the Feds gift to Wall Street, for the rest...love that 30y mortgage rate.

Wed, 12/18/2013 - 22:51 | Link to Comment HaroldWang
HaroldWang's picture

Doesn't look like the euphoria in Asia is lasting much longer into their sessions with the exception of Nikkei. Everything else fading the pop, as is /ES now. Bernanke top ticked the mkt today. That should be all she wrote.

Wed, 12/18/2013 - 22:52 | Link to Comment Al Huxley
Al Huxley's picture

Not a fucking chance - they'll drive this thing until everybody with a fucking penny left to their name is selling their last assets to buy TWTR.  When your financially neophite neighbor (or co-worker, or whatever)'s talking about his favorite social media play, and the IPO he's waiting to buy in on - that's when the plug will be pulled.

Wed, 12/18/2013 - 23:00 | Link to Comment HaroldWang
HaroldWang's picture

Those are the "old" days when people actually bought and sold stocks thinking they could make money. Now, if they can, they plop it into ETFs, Mutual Funds, whatever but not individual stocks. One machine starts taking out stops and it reverses quickly. For reference, look at LNKD today. No news, no nothing, just rug pull. Joe SixPack isn't buying and selling LNKD. The machines are. And whoever can fuck over the other side clawing for the top of the mountain, they will. Greed is not good - it's what will kill this market.

Wed, 12/18/2013 - 23:09 | Link to Comment Al Huxley
Al Huxley's picture

You say that now, but if TWTR jumps to 80 bucks in the next2 weeks, and is all over the news, watch the average guy rush to get in on it.  It hasn't changed that much, other than the average guy's going to lose a lot less money this time because he has a lot less to lose.

Thu, 12/19/2013 - 02:13 | Link to Comment darteaus
darteaus's picture

What!? Now you're saying "IF" TWTR? You're coming around...

Thu, 12/19/2013 - 02:13 | Link to Comment darteaus
darteaus's picture

What!? Now you're saying "IF" TWTR? You're coming around...

Wed, 12/18/2013 - 23:35 | Link to Comment besnook
besnook's picture

this is the last desperate act. taper means a rise in bond yields which means a selloff in bonds which "normally" means flow into stocks or other income producing investments. if this quarter says the economy is officially slowing down there will be enough room in bond prices to take yields down more than a full point,  highlighting another episode of printopalooza

Thu, 12/19/2013 - 03:51 | Link to Comment Clowns on Acid
Clowns on Acid's picture

What is amazing is that Obama is President, he is totally fucking it up, and then there is ObamaCare, the LSM is covering for him as fast as they possibly can, and the Fed has been printing $1Trillion / yr for the last 3 years..... WTF ??? This is feckin' science fiction.

The Stalingrad and Poorski is all time highs.... even the NasDark is at 13 yr highs.... this cannot last. The QQQ will be the first to flop 25%. I see dead people starting next week ......  

Thu, 12/19/2013 - 09:43 | Link to Comment GoldenTool
GoldenTool's picture

Down arrowed you because this market can stay irrational longer then you can stay solvent.  Go ahead and short I double dog dare you.

 

"Salutant vos, qui usque ad mortem"

Thu, 12/19/2013 - 06:04 | Link to Comment WhiteNight123129
WhiteNight123129's picture

China is doing the right thing, making interest rates high is the best way to 1. Wipe off bad credit, 2. Protect the savers. 

China has read the XIX century banking principles from the West. It has not been lost for everybody.

 

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