Home > November 2017 > Nov 17, 2017 You know the Metals have cared less about that rally yesterday

Nov 17, 2017 You know the Metals have cared less about that rally yesterday

November 17th, 2017

Tonight Shanghai Futures were almost flat after a sell off yesterday. Yes, ALL THE BULLS bought on the News of the Tax Plan, but tonight it’s not following through so much. Nikkii was up only .20 and Chinese stocks traded in Shanghai fell. The PBoC has injected a Large amount of Money into the system this week to ease the sell off in bonds they are seeing. Normally we would have seen a rally, but nope. China is slowing and everyone knows that the Party is over for Global Growth IMHO. Tonight in the First hour of the Europe session we are down about .15%. Yen rallied earlier while Aussie was weak. All goes to a market that shouldn’t have partied so hard yesterday..or actually..for a very long time. Building permits will be coming out in the US Session.

November 2017

  • Trading_Nymph

    From Reuters on PBoC action…China’s money rates ease after biggest cash injection since January
    Reuters Staff
    6 MIN READ
    SHANGHAI, Nov 17 (Reuters) – China’s primary money rates
    fell for the week after the central bank made the largest weekly
    net fund injection in 10 months, in what traders said was
    targeted at easing liquidity stress in the financial system and
    calming a recent bond market rout.
    The People’s Bank of China (PBOC) injected a net 810 billion
    yuan ($122.24 billion) via reverse repos in open market
    operations this week, compared with a net drain of 230 billion
    yuan a week earlier.
    The weekly net injection was the largest since mid-January.

    The volume-weighted average rate of the benchmark seven-day
    repo traded in the interbank market, considered
    the best indicator of general liquidity in China, was 2.7470
    percent on Friday morning, around 20 basis points lower than the
    previous week’s closing average rate of 2.9438 percent.
    Traders said the large cash injection was not only to
    counter tight liquidity from seasonal tax payments and maturing
    reverse repurchase agreements, but to ease tension from a
    sell-off in bonds.
    China’s 10-year treasury bond yields surged to a
    high of 4.033 percent at one point this week, their highest in
    more than three years, as institutions sold off liquid
    securities to strengthen their cash positions amid worsening
    market sentiment.
    “The recent CGB sell-offs appear to have struck a nerve with
    policymakers, prompting the PBOC to take action to stabilise
    market liquidity conditions,” said Ken Cheung, senior Asian FX
    strategist at Mizuho Bank in Hong Kong.
    The yield on Chinese 10-year treasury bonds was at 3.950
    percent on Friday morning, slightly higher than the previous
    week’s close at 3.918 percent.
    However, traders said they did not see liquidity support as
    altering the PBOC’s monetary policy stance. They see the central
    bank continuing to closely manage cash conditions while keeping
    its deleveraging campaign on track.
    Repo rates for other tenors also drifted lower this week.
    The one-day or overnight repo rate stood at 2.6978 percent on
    Friday morning, around 4 basis points lower than the previous
    week’s closing price. And the 14-day repo stood at 3.9112
    percent, compared with last Friday’s close of 3.9336 percent.
    The spread of the five-year credit default swap rate on
    Chinese sovereign debt fell 2.19 percent to
    61.57.

    Key money rates at a glance:

    Volume-wei Previous Change (bps) Volume
    ghted day (%)
    average
    rate (%)
    Interbank repo market
    Overnight 2.6927 2.7873 -9.46 0.00

    Seven-day 2.7470 2.8874 -14.04 0.00

    14-day 3.9147 4.1633 -24.86 0.00

    Shanghai stock exchange repo market
    Overnight 3.4850 3.2750 +21.00 89,745.40

    Seven-day
    14-day 4.3550 4.2000 +15.50 6,768.10

    PBOC Guidance Rates
    Overnight 2.8000 2.8000 +0.00

    Seven-day 3.1000 3.4400 -34.00

    14-day 4.3000 4.4000 -10.00

    SHANGHAI INTERBANK OFFERED RATE
    Overnight 2.8000 2.8000 +0.00

    Seven-day 2.8860 2.8860 +0.00

    Three-month 4.5656 4.5656 +0.00

    KEY INTEREST RATE SWAPS:
    Instrument RIC Rate Spread vs 1 yr
    official deposit
    rate*
    2 yr IRS based on 1 CNABAD2YF= 0.0000 -1.5
    year benchmark
    5 yr 7-day repo swap CNYQB7R5Y= 3.9400 n/a

    *This spread can be seen as a proxy for forward-looking market
    expectations of an interest rate cut or rise

    China FX and money market guide:
    China debt market guide:
    SHIBOR rates:
    Reports on central bank open market operations:
    New Chinese debt issues:
    Prices for central bank bills, treasury bonds and sovereign
    bonds:
    Overview of China financial market data:

    ($1 = 6.6265 Chinese yuan)

  • southern4

    Hi Girlzzzzzzz A frien on another blog posted this new blog about oil. I wanted to show it you, in case you are interest d :0

    “Kevin left this message 9 seconds ago: 14:08

    Dunno if anyone will be interested in this; it’s geopolitical, not directly market-related. My college roommate has lived in Israel for many years – after college and law school, how many people join the Israeli navy? – and is close to the current government there (another friend and classmate of ours was Israeli ambassador to the UN for a number of years, and remains a foreign policy advisor to the government). He publishes a blog, which I sometimes find insightful, sometimes incredible, in the strong sense of the word. Or non-credible. Anyway, this concerns the purported plans of the soon to be Saudi King. He has oil … “http://tinyurl.com/y9hbfvvl

  • Trading_Nymph

    From China Econ Review..Pakistan cancels China dam project agreement
    Friday, November 17, 2017
    Share:
    Pakistan has decided to cancel a $14 billion infrastructure agreement with China because it could not accept the hyper strict conditions, local media reported, in another setback to Beijing’s overseas ambitions. The exclusion of the Diamer-Bhasha dam from the China-Pakistan Economic Corridor (CPEC) framework, a key element to Beijing’s Belt and Road Initiative, was because China’s hyper strict conditions for funding the project were “not doable and against our interests,” Pakistan’s Express Tribune quoted Water and Power Development Authority chairman Muzammil Hussain as saying on Thursday. The harsh conditions included China taking ownership of the project, the operation and maintenance costs and pledging to build another operational dam, the South China Morning Post reports. The project will go on ahead, however, as Pakistan has decided to finance the 4,500 MW project itself. The decision comes only a few days after Nepal called off a $2.5 billion hydropower plant awarded to a Chinese state-owned company.

  • Trading_Nymph

    Hi Southern! Thank you for the link. IMHO Saudis want a war with Iran so BAD. They think it will be the thing they need to spike oil. Still a glut of oil out there and IMHO China is slowing so demand will be going down. Plus, China gets Iran Oil Cheap when there is trouble lol anyway. Arresting Family and starting wars with other countries to spike oil is so uncool.