Securities Times on the yuan.
As long as the People’s Bank of China sets a reference rate each day and pledges intervention if the onshore yuan moves plus or minus 2% from it I am calling b/s on this.
Archives of “May 2021” month
rss50 shades of sunset
China’s bans lenders from selling commodity futures-linked products to retail investors
An ICYMI from China’s Banking and Insurance Regulatory Commission’s (CBIRC’s) efforts to stop lenders selling investment products linked to commodities futures to retail buyers
Info came via Reuters who cited three people with knowledge of the matter.
- also instructed lenders to completely unwind their existing books for these products
- “The risk contained in banks’ commodity-linked investments cannot be easily spotted by ordinary investors, neither can they bear it,” one of the sources said. “Banks also don’t have enough expertise to run such products properly.”
On this
- “Banks also don’t have enough expertise to run such products properly.”
Probably applies to many banks running their own books on such (and other) products right around the world, not only in China.
Link to Reuters for more if you are interested.
This continues the theme of Chinese regulators tightening up rules and enforcement of commodity markets in light of the high prices and volatility seen recently.
Major indices close higher. Dow lags (but close higher). Russell 2000 leads the way higher
Nvidia releases earnings after the close
the major US indices are ending the session with mixed results. The Dow 30 is closing lower. The Russell 2000 index up small-cap stocks is closing up around 2%.
- The Dow and S&P are on track for a monthly gain
- the NASDAQ remains on track for a down month. First decline since October
- Best-performing sector was energy
- Russell 2000 closed higher for the fourth time in five days
- Dow closes 2% from the all-time high
- S&P closes less than 1% from the all-time high
- Dow is up for the fourth time in five sessions
A look at the final numbers shows:
- S&P index rose 7.94 points or 0.19% at 4196.06
- NASDAQ index rose 80.83 points or 0.59% at 13738.00
- Dow industrial average rose 10.13 points or +0.03% at 34322.79
- Russell 2000 up at 47.52 points or 1.97% at 2249.27
In Europe today, the major indices closed mostly lower but little changed.
Below is a summary of the changes, highs and lows from May point and percentage perspective for North American and major European stock indices.
Thought For A Day
U.S. Treasury auctioned off $61 billion of 10 year notes at a high yield of 0.788%
WI at time of auction was at 0.794%
- High yield 0.788%.
- WI at time of auction 0.794%.. Tail -0.6 bps
- Bid to cover 2.49x. Six month average 2.34 times
- Dealers 20.78%. Six month average 26.3%. Smallest amount since September 2020
- Indirects 64.4%. Six month average 57.9%
- Directs 14.9%. Six month average 15.8%
Grade: B+/A-
- Yield was below the WI level at the time of auction by -0.6 basis point
- Dealers are saddled with much less than the average at 20.78% versus 26.3%
- The foreign demand as measured by indirect bidders shows strong demand at 64.4% versus 57.9%.
- Bid to cover was comfortably above the six month average as well at 2.49x vs 2.34x
The cycle high in the five year yield reach 0.988% back in April. The low move down to 0.89% (that was the all-time low yield). The yield remains above its rising 100 hour moving average at 0.699%.
Rick Santelli on CNBC David a grade of A-
In case anyone was wondering where #BTC mining happens
Be sure to keep an eye on the Chinese yuan in the days ahead
The yuan is trading below 6.40 against the dollar
That applies to both the offshore and onshore yuan now, with the latter also breaking to its highest levels since 2018 as it trades past 6.40 against the dollar now.
As mentioned yesterday, the thing to note here as well is that Chinese officials and media are not really offering much pushback to the latest strengthening in the currency so that may pave the way for further gains in the bigger picture.
For this week, keep an eye on the PBOC fix in the coming days. If the Chinese central bank is comfortable with a push below 6.40, that’s the first green light.
And in turn, this could translate to some selling in the dollar as well.
China to limit some corn imports and cancel some US shipments on domestic blending issues
China easing up on agriculture spending
The US and China are set for trade talks and it looks like China will play tough. They’ve undershot trade targets in this deal, partly owing to the pandemic but now it sounds like they’re going to play hardball.
The cargoes are said to be less than 1 million tons compared to the 20 million tons that have been purchased this season.
This has caused a bit of risk aversion but the report highlights that it’s more of a domestic issue that part of trade talks. Chinese businesses are evidently shipping corn into free trade zones and blending them for animal feed — something that avoids import tariffs.
I don’t think this dip will last.
Bill Gates demonstrating how much data could be stored in a single CD-ROM (1994)
