Key Points – November Report
Liquidity across China’s interbank money market was little changed in November, the latest MNI Liquidity Conditions Index shows.
The Liquidity Condition Index stood at 38.9 in November, up from the 35.7 recorded in October. The higher the index reading, the tighter liquidity appears to survey participants.
- The Economy Condition Index stood at 14.8, recovering modestly from 7.1 previously, although the recovery was due to less people seeing further downside, as no respondents saw a near-term recovery.
- The PBOC Policy Bias Index edged lower, still sitting below the 50 mark.
- The Guidance Clarity Index also edged lower, although was overall little changed on levels seen in recent months.
- Despite the economy seen slowing, long-term bond yields are seen hovering around current levels over the next 3 months
The MNI survey collected the opinions of traders with financial institutions operating in China's interbank market, the country's main platform for trading fixed-income and currency instruments, and the main funding source for financial institutions. Interviews were conducted Nov 8 – Nov 19
