Yuan Depreciation Is ‘Red Flag’ With China At ‘Desperate Juncture’

It's fair to say China's economic woes are the most important story in the macro universe. Tuesday's surprise rate cut from the PBoC was notable not just for the size (the largest MLF cut since 2020) but also for the proximity to the last cut. This was the second time in two months that Beijing lowered the one-year MLF rate in conjunction with the release of monthly activity data. The yuan is in trouble. Tuesday's losses pushed the would-be dollar competitor to the weakest against the greenbac