Hedge Funds Fight The PBOC: There Can Be Only Yuan

Hedge Funds Fight The PBOC: There Can Be Only Yuan

Tyler Durden’s pictureSubmitted by Tyler Durden on 02/03/2016 21:00 -0500
http://www.zerohedge.com/news/2016-02-03/hedge-funds-fight-pboc-there-can-be-only-yuan

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…

Leave a Reply