Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
With further lockdowns and Covid-related restrictions across the economy, demand for credit has slowed, leaving an abundance of liquidity in the system, which, along with central bank operations, has pushed short-term money market rates lower, the latest MNI Liquidity Conditions Index shows.
The Liquidity Condition Index slipped to 12.5 in May, down from 30.0 in April, touching the second lowest reading since the breakout of the Covid in early 2020. As many as three-quarters of traders reporting conditions improved on April.
The higher the index reading, the tighter liquidity appears to survey participants.
- The Economy Condition Index stood at 18.8, slowing from April's rise to 26.7,partly on fresh Covid concerns.
- The PBOC Policy Bias Index remained below 50 for an 11th consecutive month.
- The Guidance Clarity Index was little changed, as respondents again claim to understand the signals from the PBOC.
The MNI survey collected the opinions of 32 traders with financial institutions operating in China's interbank market, the country's main platform for trading fixed income and currency instruments, and the main funding source for financial institutions.
Interviews were conducted May 9 – May 20.
Click below for the full press release:
MNI China Liquidity Index May 2022.pdf
For full database history and full report on the MNI China Liquidity Index™, please contact:sales@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.