China Suspends Bond Market After "Abnormal Fluctuations"

Tyler Durden's picture

China has suspended trading in its bond market for at least one Ministry of Finance-issued bond suffered "abnormal fluctuations" in the last two trading days.

The MOF 2021s dumped and pumped by almost 10 points in the last two days (and at the same time 5Y China bond futures rallied and fell notably...


The Shanghai Stock Exchange has suspended trading of the bond (Number 019535):

[The bond] is trading this morning with abnormal fluctuations. According to the relevant provisions of the "Shanghai Stock Exchange Trading Rules" and the "Shanghai Stock Exchange Securities Exception Trading Real-time Monitoring Rules", the firm decided to suspend treasury bonds from 11:00 on May 16, 2017 (019535).


From 20:17 on May 16, 2017 to resume trading.


We remind investors to pay attention to transaction risk, rational investment.


After the resumption of trading, if the bond transaction again abnormal fluctuations, the implementation of the second interim suspension of trading, suspension time lasted to 14:55 today.

One wonders if the delveraging is killing liquidity in the Treasury market now (as we have already seen the impact in the corporate bond market)

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Seasmoke's picture

No bids. No one is buying any more ?????

The central planners's picture

Did the POBC got infected by a malware?

Four chan's picture


The central planners's picture

How do you say we ran out of red ink in chineese?

securitized-debt's picture

she was a waitress in a cocktail bar now she owns a jet...

Mr 9x19's picture

can someone make a ban request on this fucking bot ? securitized-debt

takeaction's picture

Did you just see...SETH RICH was in contact with WIKI...HOLY SHIT BATMAN..

SumTing Wong's picture

Why does the headline remind me of my favorite finance joke?

Chinese man comes to the US, exchanges his RMB at 7 per dollar and goes to have a fun time. He's going back home and  has extra USD and decides to change them back into RMB (I know, it's far-fecthed, but...) and the guy at the counter returns 6 RMB per dollar. Chinese man asks, "When I get here, is 7 RMB for dollar. Now I get 6 yuan per dollar. What happened?"

Typically bored American currency exchanger, says, "I don't know...fluctuations."

Chinese guy grabs the cash and yells back, "Yeah, fluck you white people too."

Seal_Of_Approval's picture

Seal_Of_Approval approves this joke. Good day

BreadnH2O's picture

Correct. Don't got the cash, time for a smash! Bam Bam.... Bam, Bam, Bam!

Bunga Bunga's picture

Chinese "market" - what a shit show. Beware of Chinese communists!

Cordeezy's picture

Maybe something to do with the belt and road initiative.

U4 eee aaa's picture

They are losing the game so it is time to take their football and go running home to mom

Ouagadoudou's picture

Banks and gouvernement are the counterparts. Nothing ctrl + P can't solve

ebworthen's picture

Market?  What market?

besnook's picture

they just haven't figured out the details of fixing a market.

robertocarlos's picture

They only need 900 billion dollars to build a road.

Squids_In's picture

Someone got fucked on a large stop order. That's what I call slippage!

Harry Lightning's picture

If the Tresaury stopped trading in US Bonds every time there were "abnormal fluctuations", the instruments would trade for about 30 seceonds every day.

Which reminds me of the Korean woman who often receives Korean won from family back home to safe-keep in the US in dollars. One week she goes to her American bank and is quoted an exchange rate for won that gives her fewer dollars than the week before. When she complains and asks for a reason for the change in exchange rate, the bank clerk only says "sorry, fluctuations".

This happens for the next several weeks, and finally the Korean woman gets very angry. So this one day she decides she will challange the clerk as to what he means when he gives the reason for the exchange rate change as "fluctuations".

So as she expected, the exchange rate was lower again for her when she entered the bank this week, and as before she asked why and was told "fluctuations". She asked what that meant, and the clerk just responded again by saying "fluctuations". 

By the third time the clerk repeated the same thing the woman was really angry, so she told the clerk she was giving him just one more chance to explain the change in the exchange rate. When he responded that it really was all due to "fluctuations", the woman finally lost her temper and said "...fluctuations ? Fine...fluck you White people too ! I'm taking my business elsewhere !"

Fake Trump's picture


pc_babe's picture

FluckUAsians? ... no, FluckUAmericans!