Thanks Again, PBoC

ZH: Chinese Currency Bears Crucified After Yuan Overnight Deposit Rate Hits 65%
As Bloomberg reports, the offshore yuan soared the most in four months as funding costs surged "amid speculation policy makers were supporting the currency" following Moody's surprise rating downgrade last week. The offshore Yuan jumped as much as 0.8% to 6.7677 per dollar, the highest level since Nov. 4, before easing to 6.7731. The currency has rallied 1.6 percent, the most in Asia, since Moody’s Investors Service cut its rating on China’s debt a week ago.

As shown below, and as reported in our morning wrap, a short squeeze launched by China's central bank has slammed yuan bears, after Hibor, the overnight yuan interbank rate in Hong Kong, surged 15.7% points on Wednesday to 21.08% , the highest since Jan. 6...

... while the offshore yuan’s overnight deposit rate jumped to a whopping 65%, the highest so far this year.
USDCNH fell 1 percent on the day. Or from the other side, Chinese homes became 1 percent more overvalued relative to global assets. Fundamental yuan outflow pressure increased greatly today.

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