Overnight, we got still more evidence that China's efforts to curb capital flight are having a demonstrable effect on offshore yuan liquidity.
For anyone who is still somehow unconvinced, monitoring these money market rates is now mandatory if you want to have any hope of staying up to speed.
Keep yourself apprised so you don't end up woefully behind the curve and whatever you do, don't listen to anyone who says you shouldn't concern yourself with a couple of basis points here or there in markets that are some 8,000 miles away. If you take that advice, you may well wake up one morning wondering why US futs are pointing to a 1,000 drop at the open.
The gist, via HSBC's Joey Chew: "Yuan funding squeeze may worsen as Chinese authorities keep stepping up capital account controls to curb outflows."
The visual, via Bloomberg:
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