CNHJPY CNH/JPY
- 20.4335
- -0.0940-0.46%
CNH/JPY News
China's Central Bank Chief Signals Support for Economy in 2025
Nasdaq, S&P hit new highs, French stock and bond yields fluctuate and rise, Euro once fell more than 1%, Dollar rose.
On the first trading day of December, Cyber Monday shopping amounts will break records, with the Nasdaq and Chinese concept stocks rising about 1%, and the chip index leading with a 2.6% increase, while the Dow fell from its peak. Tesla soared over 4% during the day, intel rose nearly 6% before turning negative, super micro computer surged nearly 29%, and Xpeng autos climbed over 5%, but Li Auto dropped nearly 4%. The French government faces a vote of no confidence, causing French stocks to briefly fall over 1%, and the spread between French and German government bond yields approached the widest in twelve years. US henry hub natural gas fell over 4%, the indian rupee hit a new low, and the offshore yuan dropped over 400 points, falling below 7.29 yuan.
A historic moment! The china 10-year treasury notes yield has "crossed 2"; what has happened?
Funds and insurance are leading the way + betting on further easing of monetary policy.
Chinese Manufacturers See Growth in Second Straight Month in November
China's 10-Year Yield Falls Toward Record 2% on Easing Bets
China's Local Governments Issue 4.6 Trillion Yuan in Bonds in January-October
Will the central banks of the US and Japan take major actions next month? The yen has been continuously appreciating, approaching the 150 threshold at one point.
The interest rate differential between the US and Japan may narrow.
In November, the MLF volume continued to shrink. Previously, the 500 billion buy-back reverse repurchase has released medium-term liquidity ahead of schedule. The industry expects the reserve requirement ratio cut to be implemented faster.
①The funding operation mode of shortening and lengthening funds continues. On the one hand, the central bank continues to reduce the MLF operations volume, reduce the existing stock to mitigate its impact on the liquidity market. On the other hand, short-term funds continue to be net injected to hedge against cross-month fund pressure, strengthening the guiding position of reverse repurchase agreements on market interest rates. ②Local government bonds are centrally supplied, and the MLF is likely to see a quicker implementation under the reduced volume environment.
China Keeps Policy Loan Rate Unchanged for Second Month
After the USD index broke through 107, the offshore RMB returned to 7.25. The central bank once again mentioned exchange rate flexibility, with tolerance for volatility possibly increasing.
① The US dollar index rose and broke through the key level of 107. The offshore renminbi against the US dollar once again reached the 7.25 level, last time was at the end of July. ② The head of the International Department of the People's Bank of China stated that he insists on the decisive role of the market in the formation of exchange rates, maintains the flexibility of exchange rates, and strengthens expectation guidance. The tolerance of management for fluctuations in the renminbi exchange rate may be increasing. The market generally believes that 7.30 is the recent resistance level.
Forex Today: Attention Now Shifts to Japanese Inflation and Global PMIs
IMF Says Egypt Program Review Talks to Continue After 'Progress'
PBOC Leaves Loan Prime Rates Unchanged in November
Charting the Global Economy: US Inflation Progress Stalls
The central bank today conducted a 981 billion yuan reverse repurchase operation for 7 days, with short-term fluctuations in liquidity being controllable, and the market expects a possible reserve requirement ratio cut in November.
①Today, 12.2 billion yuan reverse repos will mature, in addition to 1450 billion yuan MLF and 80 billion yuan of treasury cash deposits maturing. The central bank conducted a 981 billion yuan 7-day reverse repo operation. Industry insiders believe that under the new framework of the central bank, there may be a reserve requirement ratio cut once this year, possibly as early as November.
China's Broad Money Supply Grows 7.5% in October
China's Newly-Issued Loans Fall 69% in October, Missing Estimates
Japan's central bank, will it also not raise interest rates in December?
Minutes of the October meeting released by the Bank of Japan showed that policymakers are cautious about further rate hikes and have not yet reached a consensus on whether to raise rates in December. The aftershocks of the US election are still lingering, and the unstable Japanese political situation is also affecting the prospects of a rate hike.
Over 1.5 trillion funds will mature this week, and the market is once again calling for reserve requirement ratio cuts and interest rate cuts. Will the reserve requirement ratio be cut in late November to lower interest rates early next year?
1. Mid-term interest rate cuts are subject to dual constraints of exchange rates and net interest margins; it is more feasible to reduce the reserve requirement ratio in the short term, and it is expected to be announced in late November and implemented in early December. 2. To maintain flexibility, it is necessary to retain the possibility of offsetting the additional tariffs imposed by the United States through devaluation. 3. The best window for further interest rate cuts in China is expected to be before Q1 of 2025.
China Exports Grow at Fastest Pace Since Mid-2022