China failed to find enough buyers for the whole of the two auctions it just held. According to some anonymous traders, the country’s finance ministry had planned on selling CNY 20bn worth of the 273-day bills and CNY15bn of the 91-day bills, FT is reporting.
They sold only 15.81 billion and 14.25 billion, respectively.
The failed auction is likely the result of more money tightening in China. Since China has been the huge global liquidity provider for the recent recovery strength in the markets, more Chinese tightening will have major global ramifications to the downside.
When money is tight, cash is not only king, it can also be emperor.
No comments:
Post a Comment