Liquidity Thread

ironchef said:
Let me get this straight, according to ET: China (debt bubble), India (debt bubble), Canada (housing bubble), Australia (housing bubble), Turkey (liquidity), Argentina (liquidity), Japan (Gov debt bubble), UK (Brexit mess) ... US? according to MMT, not to worry, we can just print money. :D
More...

Most People want to be told what to think... Great Snippet with Gundlach on Real Vision, recommend watching whole video, towards the end talks about the MMT wackjobs, I mean US is currently doing MMT, how much further do they want to push it ?

 
https://ca.finance.yahoo.com/news/japan-apos-liquidity-woes-risk-021242352.html

Japan might be headed in the right direction finally!

(Bloomberg) -- Haruhiko Kuroda took charge at the Bank of Japan declaring an “incremental” approach to stoking inflation should be abandoned. Six years on and still a long way from his price goal, the governor has been forced to tinker with little-noticed funding programs in a bid to sustain his stimulus program.

The key challenge: negative side effects of Kuroda’s original initiative -- massive asset purchases -- are piling up. Traders continue to warn about depressed liquidity in Japanese government bonds (JGBs), while major institutional investors are pushed into riskier assets to an extent that’s stoked regulatory concerns.

While the focus of last week’s policy meeting was fresh wording on the time frame for maintaining ultra-low rates, the other tweaks showcase the BOJ’s dilemma: how to convince observers that it’s still pursuing its inflation target while limiting the damage.

“The fact that the BOJ had to rely on complicated measures like these indirectly show that it has limited tools left for easing,” JPMorgan Chase & Co. rates strategists Takafumi Yamawaki and Shumpei Kobayashi wrote in a note on the meeting.
 
http://www.xinhuanet.com/english/2019-05/14/c_138057166.htm

BEIJING, May 14 (Xinhua) -- The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China's interbank market, increased 25.63 basis points to 2.4123 percent Tuesday.

The seven-day Shibor increased 7.1 basis points to 2.65 percent, while the two-week rate was up 4.4 basis points to 2.449 percent.

The one-month Shibor went up 0.2 basis points to 2.717 percent, with the three-month rate up 0.2 basis points to 2.891 percent, and the six-month rate staying flat at 2.948 percent.

The nine-month rate stayed at 3.05 percent, and the one-year rate was up 0.1 basis points to 3.153 percent.
 
https://www.bloomberg.com/news/arti...leave-bond-traders-stranded?srnd=fixed-income

Tighter liquidity in the financial system may also be adding to the volatility, Deutsche Bank’s Liu said. Interbank rates tend to climb when lenders face seasonal demands such as tax payments. That was the case when the overnight repo rate surged to a four-year high of 3% in mid-April as banks hoarded cash for that purpose, then tumbled to a three-year low within weeks. The seven-day rate has moved by 10 basis points on average every day this year, twice as much as in 2018, according to Bloomberg calculations.

Investors aren’t sure how to proceed in this environment, said the trader at the commercial bank, making it hard to execute short-term trades. Bank of America Corp.’s Claudio Piron agrees.

“The environment is too uncertain,” said Piron, co-head of Asia foreign-exchange and rates strategy at Bank of America Merrill Lynch.

The overnight repo rate tumbled 25 basis points on Thursday after surging 1.4 percentage points in the previous five sessions. The seven-day tenor fell 2 basis points to 2.59% as of 10:02 a.m. in Shanghai.
 
HK Hibor is out of whack again, serious problems brewing in O/N and 1 Week

https://www.hangseng.com/en-hk/personal/mortgages/reference-rate/historical-hibor/

D7k0vuCVUAACAZu.jpg large.jpg
 
https://www.bloomberg.com/news/arti...?utm_source=google&utm_medium=bd&cmpId=google

Pimco’s fund managers are concerned that liquidity in corporate bonds is drying up when investors need it the most. They’re right.

A key gauge of trading conditions in riskier bonds is close to reprising December levels, belying the relative calm in global credit markets, according to data on bid-offer spreads compiled by Bloomberg. It shows the cost to cash out of corporate bonds keeps getting bigger during sell-offs, when funds often face redemptions.

It all helps to explain why Pacific Investment Management Co. said this week that “challenging liquidity conditions’’ aren’t going away anytime soon, according to the latest outlook from the $1.76 trillion asset manager.
 
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