Yuan has fallen in the past week or two (chart below is offshore yuan, CNH …  a rising USD/CNH is a depreciating CNH) but its difficult to think this has Chinese authorities too concerned, its barely retraced some of its 2020 gains.  Still, maybe its a signal the recent fall will not be allowed to accelerate.

Chip lead times, the gap between ordering a semiconductor and taking delivery

• increased by seven days to 18 weeks in May from the previous month
• gap is the longest wait time since the firm began tracking the data in 2017
• gap is now more than four weeks longer than the previous peak in 2018

The generally accepted recipe for inflation (there are others) is:

• a lot of money (talking to you, central banks… )
• chasing too few products (chip shortage delaying production)

Maybe transitory inflation is going to take a wee bit longer to be, you know, transitory, if this ‘gap’ data is correct.

The article does differentiate between products, some of which are seeing shrinking gaps, such as automotive chips. And, there is more detail also, link here if you can access it (Bloomberg may be gated)

TSMC is pumping up the volume as best it can

• The testimony of Federal Reserve Chair Powell shows that Biden’s economic plan is working
• Says does not comment on Federal Reserve monetary policy decisions

Wow.

Initial thought: “Well, they would say that, wouldn’t they?”

Thought 2: “Maybe the WH won’t comment on Fed policy, but economic Headkicker in Chief, US Treasury Sec. Janet Yellen, certainly will if need be.”

• Paypal and Visa investment is into B’chain’ Capital’s latest fund.

Paypal statement:

• PayPal is committed to fostering an ecosystem of companies making digital currencies more accessible, useful and secure

Visa says

•  “We’re focused on enhancing all forms of money movement, whether on the Visa network, or beyond.”

More support for the increasing institutional interest in blockchain technology.

Meanwhile leading crypto had a wild ride. the chatter of a support level around $30K turned out to be garbage, given the drop under $29K but on the bright side at least it bounced! Quite impressively bounced too: