China: RRR cut to help rates market sentiment, less so for RMB – ANZ

By FXStreet Research Team at ANZ, suggests that the China’s RRR cut by 50bps is positive for bond market sentiment.

Key Quotes

• “Concerns over supply will remain given the possibility that China’s budget deficit could increase to 3% of GDP or higher.

• Despite this, we believe the bullish trend for the bond market will remain.

• However, previous RRR cuts have tended to be negative for the currency, though we expect the authorities to maintain stability in the RMB basket, which will limit yuan depreciation pressure.”
For more information, read our latest forex news. …read more

Source:: FX Street