Offshore Yuan is sliding lower after its "US equity market saving" surge during the day session as PBOC fixes Yuan stable for the 10th day in a row. Despite the smoke and mirrors of stability however, they injected a colossal 400 billion Yuan into the financial system - the most in 3 years.
Offshore Yuan is sliding...
PBOC holds Yuan Fix stable for the 10th day with a very small weakening:
- *CHINA SETS YUAN REFERENCE RATE AT 6.5585 AGAINST U.S. DOLLAR
But injected a godzilla-size 400bn Yuan of liquidity
- *PBOC TO INJECT 110B YUAN WITH 7-DAY REVERSE REPOS: TRADER
- *PBOC TO INJECT 290B YUAN WITH 28-DAY REVERSE REPOS: TRADER
This is not normal new year liquidty injection at all...
- *PBOC INJECTS MOST CASH IN THREE YEARS IN OPEN-MARKET OPERATIONS
Something is breaking and PBOC is desperate to fill the hole with centrally planned reverse repo.
And equity markets are not bouncing like the rest opf AsiaPac:
- *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 1.2% TO 3,136.38
- *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1.4% TO 2,934.39