Free Trial

MNI: Tightness in structural liquidity conditions....>

MNI, NEWS
MNI: Tightness in structural liquidity conditions has appeared in the interbank
market as the People's Bank of China has skipped its open-market operations for
three consecutive days this week, the China Securities Journal reported
Thursday. The PBOC turned off its tap in the critical year-end period,
reflecting its bias toward tightnees to control liquidity conditions with
consideration for strict regulation and deleveraging. But the structural problem
in liquidity allocation was already obvious, and the situation has been worse
than expected. Volatility in the bond and stock markets should increase next
year as tightness in structural liquidity becomes the norm. However, in the
first quarter, conditions may loosen to accommodate a marginal downturn in the
economy. (China Securities Journal)

To read the full story

Close

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.