Currency Wars Reignite As Yuan Tumbles Most In 2 Months And Chinese Bond Market Freezes

Jon Alternative Media, Blogosphere, Economy, Government

Did China just re-enter the currency wars? The Chinese Yuan dropped 0.29% overnight – its biggest drop since September and 2nd biggest devaluation since March – as the currency tumbles back in line with the PBOC’s fixing for the first time in over 3 months. Despite ‘hopes’, S&P confirms the recent (and reconfirmed) rate cut doesn’t signal renewed government intentions to resort to aggressive stimulus to prop up economy. More troubling is the fact that China’s huge corporate debt market appears to be freezing as over $1.2 billion in bond sales were scrapped or delayed last week suggesting wall of maturing debt will find it increasingly difficult to roll-over and keep the dream alive (especially in light of Haixin’s bankruptcy last week).

This post was published at Zero Hedge on 11/24/2014.