PBoC Halts Bond Futures, To Increase Liquidity Amid Rising Default Risk

Signs signs, everywhere signs.

WSJ: China Halts Trading in Key Bond Futures as Panicky Investors Sell Securities
Chinese bond yields soared and authorities halted trading in some futures contracts for the first time on Thursday, as a global bond-market selloff worsened a day after the Federal Reserve signaled a quicker pace of interest-rate increases next year.
iFeng: 媒体:央行去债市杠杆目的已达到 将力避事态升级
Whether the bond market to follow the stability, will depend on whether the central bank to promote the "deleveraging" and follow-up Monetary Fund redemption situation can improve. Industry experts said that the adjustment for the bond market, not the debt crisis. The central bank's purpose is to promote the bond market orderly "deleveraging", I believe the central bank will increase liquidity in the short term, to stabilize the current financial situation of tension.
Yesterday's close, bond futures fell across the board. Among them, 10-year bond futures contract the main contract T1703 closed down 1.81%, the largest since the listing of the decline, reported at 94.555 yuan, 102,700 hand turnover. 5-year bond futures main contract TF1703 closed down 1.16 percent, at 97.595 yuan, traded 17,700 hands.

Reporters statistics found, T1703 from October 24 to 101.600 yuan has been reduced to December 15 of 94.555 yuan, 39 trading days, fell 6.93%.

Another market news that the liquidity in the interbank market continued tight situation, yesterday morning, a number of banks once interrupted the operation of the industry, the four lines of ICBC to split the bank only part of the funds.

With the bond market volatility intensified, Chenming Paper, Huayi Group, China's salt and other seven major issuers announced yesterday to cancel or postpone the issue of more than 60 billion total bonds.
Here's the T1703 contract being discussed. The contract bounced to 95.17 in early Friday trading, up 54 fen from the Thursday close.

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