DB Didn’t Want To Have To Do This, But “Every Day” It’s Something New In China

Ok, so remember how, first thing Monday morning, we noted that 10Y yields in China hit 22-month highs overnight? Right. Remember what we said was the proximate cause? Here's a refresher: (Very) long story, (very) short, you’ve got lackluster PMIs bumping up against i) an effort to rein in speculation via tighter monetary policy (although the PBoC is going the “stealth” route with OMO hikes), and ii) efforts get a handle on the (still) out of control shadow banking complex (think: WMP WM

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One thought on “DB Didn’t Want To Have To Do This, But “Every Day” It’s Something New In China”

“At most, the regulators can slow down the pace of leveraging,” said Victor Shih, a professor at the University of California, San Diego who specializes in China’s politics and economy. “The day China sees true deleveraging is the day a financial crisis begins.”