China's money markets have started to come unglued, with serious illiquidity driving up money rates. Despite provoking one of the largest liquidity operations in twenty years from the PBOC yesterday, the disorder came back even worse today. All of this against the backdrop of a currency fight and the prospect China's bank credit problem becomes a full-blown liquidity crisis.

Eurodollar University's Money & Macro Analysis

Bloomberg China's Central Bank Pumps Near-Historic Level of Cash Into Financial System
https://www.bloomberg.com/news/articles/2025-01-15/pboc-dials-up-short-term-liquidity-injections-amid-cash-squeeze

Bloomberg China Cash Squeeze Rolls on Even After Central Bank’s Infusions
https://www.bloomberg.com/news/articles/2025-01-16/china-cash-squeeze-rolls-on-even-after-pboc-liquidity-boosts

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