China’s shadow bank crackdown launches interest rate rocket

Wednesday, 26 April 2017

While the global bond bid continues to firm and interest rate curves to flatten, in one place the precise opposite is happening and fast: China:

Money markets have a very similar trend:

Some of this is PBOC tightening and some is Fed tightening triggering capital flight. But some, as well, is structural reform, via Bloomie:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.