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BOND SUMMARY

EGB/Gilt - Attention turns to the FOMC

EMERGING MARKETS

CZKPLN Approaching Key Resistance at 0.18

US TSY OPTIONS

Range in Underlying Spurring Vol Sales

USD

Extends gains against the Pound and EUR

     BEIJING (MNI) - Chinese banks sharply increased selling of foreign exchange
on behalf of their clients in November, indicating capital outflows accelerated
under a weakening yuan and concerns over a slowing economy and trade conflicts
with the U.S. 
     The following are key takeaways from data released by the State
Administration of Foreign Exchange on late Thursday.
     --Banks sold net CNY139.4 billion worth of FX on behalf of their clients.
This compared with CNY24.1 billion in October. The number is a key indicator of
capital flows in and out of the country. The greater the net sales number, the
larger the outflow.
     --In terms of forward contracts, banks were net forex purchasers on behalf
of their clients in November, suggesting market participants were betting on a
stronger yuan in the longer term. Banks' net purchases of forex forward
contracts totaled CNY31.9 billion, compared with CNY19.1 billion in October.
     --Banks' total net forex sales, including both transactions with clients
and banks' proprietary trading desks, rose to net CNY124.1 billion in November
from CNY20.3 billion in October. In Jan-Nov, banks sold net total CNY341.2
billion to clients.
     --Bank's net purchases of forex forward contracts in November provided
US$11.2 billion of foreign exchange to meet the market's needs, Wang Chunying,
spokeswoman of SAFE, said in a statement.
     --China's forex purchase position on the central bank's balance sheet fell
CNY57.13 billion in November, indicating capital outflow pressure as yuan
weakens.
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
[TOPICS: MAQDS$,MAUDR$,MAUDS$,M$A$$$,M$Q$$$,M$U$$$]