China's Central Bank Prepares for the Worst

In recent weeks, the People's Bank of China (PBOC) has increasingly spoken about the formation of a bubble in the country's sovereign bond market. Now, it has moved from discussing the problem to preparing for its first intervention in decades.

On Friday, the central bank announced that it had signed agreements with several institutions to borrow several hundred billion yuan in long-term bonds, which it can sell on the market to try to meet demand. These steps are the strongest signal yet of the central bank's determination to slow the flow of money into sovereign bonds.

The central bank fears that buyers, such as regional banks, could face problems if yields rise sharply and the value of their assets falls, creating the potential for a crisis similar to the collapse of Silicon Valley Bank last year.

The PBOC's signals have already had some effect: the yield on 10-year bonds, which hit a record low of 2.18% last week, rose above 2.3% on Monday. Some analysts, however, doubt that the central bank can indefinitely resist demand for bonds, given that the demand was driven by problems in the collapsing real estate market, where prices are barely rising, and investors see few other attractive places to put their money.

The question of whether the PBOC can manage the bond market is becoming more pressing, considering that China plans to issue trillions of yuan in bonds in the coming years to increase leverage and central government spending. China is currently in a good position to borrow trillions of yuan from the market at very favorable rates, although why the Ministry of Finance is hesitating is not entirely clear.

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The Government of Javier Milei declared HAMAS as a terrorist group

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OFFICIAL STATEMENT

City of Buenos Aires, July 12, 2024.- The Office of the President informs that the HAMAS group has been declared by the Argentine State as an international terrorist organization.

HAMAS has claimed responsibility for the atrocities committed during the attack on Israel on October 7. These add to an extensive history of terrorist attacks in his name.

Furthermore, in recent years its link with the Islamic Republic of Iran has been revealed, whose leadership was found responsible for the attacks against the Israeli Embassy in Buenos Aires and against the AMIA by the Federal Court of Criminal Cassation on April 11. . These attacks cost the lives of more than 100 Argentine citizens.

President Javier Milei has an unwavering commitment to recognizing terrorists for what they are. It is the first time that there is political will to do so.

This Government has reiterated on multiple occasions its conviction that Argentina once again align itself with Western civilization, respectful of individual rights and its institutions. For this reason, it is inadmissible that those who attack against them are not declared what they are: terrorists.

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🔗 : OPRA

⚡️ 🇺🇸 There has just been an assassination attempt against U.S. Presidential Candidate Donald Trump

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⚡️#BREAKING Trump is bleeding from his ear following the assassination attempt in Pennsylvania

🇺🇸🦁⚡️- WITH AUDIO: President Trump gives a raised fist leading a USA chant after being shot in the ear before being escorted off stage by the SS

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