“Some Folks Missed Payments”: There’s A Storm Brewing In China

Some folks missed some payments. In the wake of the PBoC's move to implement a second OMO hike in as many months... ...Bloomberg reported overnight that some "smaller financial institutions including rural commercial banks missed payments on interbank borrowing on Monday." That's not a great sign and it prompted the PBoC to inject "hundreds of billions of yuan" into the system as CNY 1-year interest-rate swaps jumped as much as 13bps to 3.77% in earlier trading while the 7-day repo rate cl