Chinese Interbank Funding Freezes Again As Overnight Repo Hits 33%

Jon Alternative Media, Blogosphere, Economy

While we have previously shown the amazing gimmicks the Chinese central bank does with the short end of the offshore Yuan interbank offered rate, which as previously explained, and as shown in the animation below, has become the PBOC’s favorite means of punishing currency speculators by making Yuan borrowing costs against shorts crushingly high, forcing short unwinds…
… when it comes to more traditional unsecured short-term funding markets, like the simple overnight repo, these reflect overall levels of liquidity in the interbank market, or as the case may be, complete absence thereof.

This post was published at Zero Hedge on Dec 27, 2016.