Chart Check: A Disconnect Worth Watching

Something to ponder as you try and make sense of the interplay between China’s deleveraging efforts, the Moody’s downgrade, and the addition of an opaque “counter-cyclical adjustment factor” to the yuan fix…

USDCNYVSYieldDiff

(BBG)

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One thought on “Chart Check: A Disconnect Worth Watching

  1. Does that mean, the yuan could or should strengthen even furhter? Like higher rate spread –> stronger yuan?

    Thanks for reply!

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