With every Tom, Dick, and Harry hedge fund manager now taking on The People’s Bank of China (in various ways), it is no surprise that the spread between offshore Yuan and onshore Yuan blew out to its widest in 3 weeks this morning.
They are not getting it all their way for now though.
Just as the last time the spread was this wide, The PBOC stepped in, so as we noted this morning, there was a clear and present short-squeezing danger in Yuan as The PBOC clearly intervened to snap the spread 450 pips tighter. As China opens tonight, selling pressure however is back on the Yuan…
The intervention is pretty clear…
But the battle continues, as Yuan is selling back off…
Bill Gross is right…
Gross: Hedgees are trying to break the Bank of England … uh, I mean the Bank of China. It’s 2016, not 1992.
— Janus Capital (@JanusCapital) February 3, 2016
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