Losses Gains: Market and Bond

losses gains: The central bank also gave domestic banks window guidance, requesting that they refrain from scaling back fundraising for non-banking institutions, the report said, adding such a move is commonly viewed by the market as a stabilizing measure after the foreign exchange, stock and bond markets experienced turmoil the previous day, according to Global Times China. On Thursday, while the stock market had only a mild reaction to the US interest rate hike, with the two major bourses in Shanghai and Shenzhen only taking small losses and gains respectively, the sovereign bond market had a dramatic day, with the 5-year and 10-year bond yields at one point reaching their lowest levels on record. The PBC said the move was to meet the liquidity demands of Chinese banks, and asked top financial institutions to take responsibility in transmitting monetary policies and stabilizing the market, ifeng reported, citing market insiders. The yuan also declined sharply against the US dollar on Thursday, as the PBC lowered the midpoint rate on the yuan to 6.9289 per dollar, the lowest level in more than eight years. But the yuan continued to devalue against the dollar on Friday after the PBC set the midpoint 219 points lower than the previous day to 6.9508, the lowest level since May 2008. The Chinese market however appeared to be stabilizing on Friday, as the 5-year and 10-year bond yields rebounded to post gains of 0.61 percent and 1 percent respectively, while the bourses in Shanghai and Shenzhen were up 0.17 percent and 0.77 percent respectively at market closing. (news.financializer.com). As reported in the news.