South China Morning Post report that the People's Bank of China is signalling its intention to tighten up liquidity

  • An obscure interest rate reached between China's central bank and lenders in a treasury fund auction has jumped
  • PBOC'auctioned 80 billion yuan treasury funds to commercial banks as three-month deposits were priced at 2.95 per cent, the highest level since May
  • Delivering a message that the People's Bank of China is unwilling to provide limitless cheap funds to banks
  • the PBOC is tightening the liquidity tap to cope with a weakening yuan, inflated property prices and possible rate increases by the US Federal Reserve

The piece adds that its too early to say that the PBOC is changing its fundamental pro-growth stance. This is not a major tightening.

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We'll get more indications today at the CNY fixing, due around 0115GMT