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EM FX Party's Over: Dollar Rallies In Early Asia Trading As China's Bond Bubble Gathers Pace

Tyler Durden's picture




 

After two days of relative USD carnage in and across the emerging and asian FX markets, early AsiaPac trading this evening is seeing that trend revert with the Ringgit, Rupee, and Lira sliding. After-hours gains in US equity futures have been erased, despite USDJPY's continued BoJ-aided push higher (though it seems 119.00 is the new ceiling for now). China's government bonds remain extraordinarily bid (outperforming TSYs by almost 60bps in the last few weeks) with yields dropping to 6-year-lows, as corporate bond bubble fears rotate modestly back to govvies. Aussie miners are under pressure with Iluka Resources getting hammered on "excess capacity" warnings.

 

The USDollar is rallying against Asian FX in the early going...

 

And USDJPY has run stops and rolled over...

 

Despite ongoing strength in Chinese equities (obeying the commands of The National team that "the correction is nearly over")...

 

China 10Y yields have collapsed in the last few weeks (down 50bps outright and 43bps tighter than UST since 8/20 devaluation)

 

The China-UST spread is nearing 100bps - its lowest in 4 years...

 

Offshore Yuan signaled downward pressure on the fix and sure enough, PBOC weakened the Yuan...

 

But it remains an ugly week for Aussia miners (with Iluka Resources gettting "Glencore"'d)...

 

Charts: Bloomberg

 

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Thu, 10/15/2015 - 21:22 | 6673661 Four chan
Four chan's picture

did qe4 start oct 3ed?

Thu, 10/15/2015 - 21:29 | 6673687 Omega_Man
Omega_Man's picture

The world shall turn on America and religate it into the fires of hell.... GET OUT NOW

Thu, 10/15/2015 - 21:54 | 6673764 UncleChopChop
UncleChopChop's picture

relegate.

Thu, 10/15/2015 - 22:09 | 6673793 Omega_Man
Omega_Man's picture

thanks.. spell checker not working good on this site

Thu, 10/15/2015 - 21:31 | 6673690 zerotohero
zerotohero's picture

For fucks sake can some pop this zit and let the healing begin

Thu, 10/15/2015 - 21:43 | 6673730 Atomizer
Atomizer's picture

Someone's carry trade needs Viagra. The shell companies need liquidity. They always swallow and never spit.

Fri, 10/16/2015 - 00:02 | 6674020 Solarman
Solarman's picture

Nor is grammar check.  LOL

Fri, 10/16/2015 - 01:35 | 6674121 Wait What
Wait What's picture

where is AUDJPY to tell Wait What how to trade?

now that USDJPY is losing its MoMo mojo, we need a new carry pair to take the torch!

http://www.marketwatch.com/investing/Currency/AUDJPY?countrycode=US

Fri, 10/16/2015 - 02:00 | 6674156 tarabel
tarabel's picture

 

 

Ha, ha, ha. They head faked everybody for a couple of days with a series of artifical ramps, which brought the rubes bleating back into the pen for their monthly shearing.

"Where do I put my money?"

"How about over here-- in MY pocket."

 

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