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E-MINI S&P (Z1): Corrective Cycle Still In Play


Bund correction


1Y Midcurve Put Spd Sale


Bund closing position

--Says Liquidity from Fiscal Spending in October Sufficient to Offset Expiring
Reverse Repos
     BEIJING (MNI) - The People's Bank of China skipped its open market
operations on Thursday, explaining that high fiscal spending last month had kept
banking system liquidity at a relatively high level that could absorb the impact
of maturing reverse repos.
     The lack of OMO today resulted in a net drain of CNY140 billion for the
day, as a total of CNY140 billion in reverse repos mature on Thursday. 
     This is the first trading day that the PBOC has drained liquidity via its
open market operations since Oct. 13. 
     The PBOC has drained a net CNY20 billion in liquidity so far this week.
     A total of CNY90 billion in reverse repos will mature the rest of this
week, and a total of CNY207 billion in Medium-term Lending Facility (MLF) loans
will mature on Friday.
     The CFETS-ICAP money-market sentiment index ended at 43 on Wednesday,
significantly lower than 63 at Tuesday's close. The lower the reading the better
the liquidity conditions in the interbank market.
     The benchmark seven-day repo average was last at 2.6971%, compared with
2.9402% on Wednesday.
--MNI Beijing Bureau; +86 10 85325998; email:
--MNI BEIJING Bureau; +1 202-371-2121; email: