- Over the weekend, the PBOC said that China's banking system liquidity is at a reasonable level and that China banks must control liquidity risks from credit expansion. In a separate report, the PBOC will not cut RRR or interest rates in near term, according to an unidentified PBOC official.
- Credit spreads are seen sharply wider and money market rates are higher, as uncertainty over liquidity conditions drives demand for USD.
- Yet again, the belly of the treasury curve bore the brunt of the sell-off and in Europe, German Bund is trading at levels not seen since April 2012.
- COMEX copper down over 3% this morning, technically confirming the break of this years and October 2011 low. Of note, Goldman Sachs cut its China 2013 growth estimate to 7.4% from 7.8% and cut China 2014 GDP growth estimate to 7.7% from 8.4% (China roughly accounts for 40% of global copper consumption)
Print 08:51, 24 Jun 2013 - Asian News - Source: RANsquawk
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