China’s
10-Year Sovereign Bond Yield Surges by Most on Record - (www.bloomberg.com) A
record bull run in China’s bond market is being brought to an abrupt halt. The
10-year sovereign yield surged a record 22 basis points on Thursday as a
plunging yuan and hawkish comments from the Federal Reserve damped expectations
of monetary easing in China. These factors are converging with other negatives
-- including recent data showing accelerating inflation, quickening capital
outflows and tighter liquidity. Here are five charts showing why the reversal
of a rally that began in 2014 has been so drastic.
Foreigners
are Dumping US Treasurys as Never Before - (www.wolfstreet.com) All
kinds of things are now happening in the world of bonds that haven’t happened
before. For example, authorities in China today halted trading for the
first time ever in futures contracts of government bonds, after prices had
swooned, with the 10-year yield hitting 3.4%. Trading didn’t resume until after
the People’s Bank of China injected $22 billion into the short-term money
market. What does this turmoil have to do with US Treasurys? China has been
dumping them to stave off problems in its own house…. The US Treasury
Department released its Treasury International Capital
data
for October, and what it said about the dynamics of Treasury securities is a
doozie of historic proportions.
NSA
Whistleblower Destroys Obama's Russia Narrative - "Hard Evidence Points To
An Inside Leak, Not Hacking" - (www.zerohedge.com) A
group of retired senior intelligence officials, including the NSA whistleblower
William Binney (former Technical Director, World Geopolitical & Military Analysis,
NSA), have posted an open letter on consortiumnews.com that destroys the Obama administration's
"Russian hacking" narrative. Within the letter, Binney argues
that, thanks to the NSA's "extensive domestic data-collection
network," any data removed remotely from Hillary Clinton or DNC servers
would have passed over fiber networks and therefore would have been captured by
the NSA who could have then analyzed packet data to determine the origination
point and destination address of those packets. As Binney further
notes, the only way the leaks could have avoided NSA detection is if they were
never passed over fiber networks but rather downloaded to a thumb drive by
someone with internal access to servers.
Italy
ready to recapitalise ailing banks with 15 billion euros: sources - (www.reuters.com) Italy's
government is ready to pump 15 billion euros into Monte dei Paschi di Siena (BMPS.MI)
and other ailing banks, sources said, as the country's third-largest lender
pushes ahead with a private rescue plan that is widely expected to fail. The
world's oldest bank has until Dec. 31 to raise 5 billion euros ($5.2 billion)
in equity or face being wound down by the European Central Bank, potentially
triggering a wider banking and political crisis in Italy. If needed, the
government will pump 15 billion euros into the Siena-based lender and several
other smaller banks to prevent that, two sources close to the matter said on
Thursday.
Regulator
tells China bond market makers to keep trading despite liquidity crunch -
sources - (www.reuters.com) China's
securities regulator has instructed some brokerages acting as bond market
makers to continue trading despite a liquidity crunch in the market, two
sources with direct knowledge of the matter told Reuters. The China Securities
Regulatory Commission (CSRC) told the market-making brokerages to continue to
offer buy and sell quotations and to not set restrictions on counterparties,
one of the sources said, in an attempt to ease recent liquidity stresses in the
bond market. "If market makers stop trading bonds, then segregated account
investors can't trade, which will make the liquidity problem even worse,"
the source said. The CSRC did not have an immediate comment when contacted by
Reuters.
Consumer Prices in U.S. Increase for Fourth Consecutive Month - (www.bloomberg.com)
R.I.P. Bond Bull Market as Charts Say Last Gasps Have Been Taken - (www.bloomberg.com)
It's Turning Into a Really Bad Week for China’s Markets - (www.bloomberg.com)
China’s Record Bull Run in Bonds Is Giving Way to a Market Rout - (www.bloomberg.com)
Targeting U.S. automaker signals possible China retaliation over Trump talk - (www.reuters.com)
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