15/12/16

China Halts Trading In Bond Futures After Record Bond Market Crash [feedly]



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China Halts Trading In Bond Futures After Record Bond Market Crash
// Zero Hedge

Following yesterday's violent selloff in bonds, which has continued today across the globe, one country that was particularly impacted was China, where as we reported overnight, Chinese government bond futures plunged by the most on record, dropping by 2% in the session, and erased in a week the gains of the past 18 months, hitting a 16 month high yield of 3.4%.

The crash happened just two weeks after we warned that as a result of the PBOC's imprudent tightening of financial conditions, the central bank was practically begging for a bond market crash, one which Janet Yellen was happy to catalyze with the Fed's rate hike and particularly hawkish language. As the chart below shows, a crash is precisely what China got.

 

The crash, however, was just the ....

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