HALISTER1: Easy PBOC Stance, Not Trump, Fueling Bond Sell-off: CrossBorder

Easy PBOC Stance, Not Trump, Fueling Bond Sell-off: CrossBorder

(Bloomberg) -- Rapidly growing PBOC balance sheet is driving up Chinese and global inflation and fueling the bond market sell-off, rather than concern about Trump’s policies, CrossBorder Capital said in note.
  • Not expecting reversal of easy PBOC policy in 2017; Chinese economy already responding well as seen by improved PPI, upward trend in major commodity prices
  • PBOC balance sheet expanding at 12.1% annualized rate over 6 months
  • Debt metrics are high but “not yet so stretched” given PBOC’s tight control of monetary system
  • CrossBorder keeping positive view on EM and commodities and negative view on bonds
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
PBCZ CH (People's Bank Of China)

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