MARKET DAILY

Market 11/10: Strong short-covering rally after reason for failed bond auction revealed

ICBC was "hacked" leading to failed auction yesterday afternoon. RRP has fallen below 1000 billion USD but BTFP funding for banking system has increased.

1. Labor market tight but gradually balancing + supply shock has eased.

2. GDP growth still 'quite' strong (expected to ease slightly in coming quarters) → Will continue to hike rates if necessary.

3. Not confident in bringing inflation back to 2% (recent inflation data decline may be false signal).

Nội dung độc quyền

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