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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