Reuters reports China Set to Reopen After Beijing Eases Policy.

> Shares in Asia stumbled in early trade on Monday as investors waited with bated breath as China’s markets prepare to reopen following a week-long holiday and after its central bank cut banks’ reserve requirements in a bid to support growth.

> Investors will be focused on markets in China, following a decision on Sunday by the People’s Bank of China (PBOC) to cut the level of cash that banks must hold as reserves in a bid to lower financing costs and spur growth amid concerns over the economic drag from an escalating trade dispute with the United States.

> Reserve requirement ratios (RRRs) - currently 15.5 percent for large commercial lenders and 13.5 percent for smaller banks - would be cut by 100 basis points effective Oct. 15, the PBOC said, matching a similar-sized move in April.

Trade War

China said it would not devalue the yuan in response to a trade war. Actions speak louder that words.

ZeroHedge comments Yuan Set To Plunge Below PBOC "Red Line".

> The CNH is once again dangerously close to the PBOC's redline of 7.00, with 3-month USD/CNH points, which have reached their highest this year, suggesting that a breach of that level is increasingly probably and implying a CNH yield of around 2% above equivalent USD 3-month rates. At the same time, the 1-year forward is also flirting with 1,000 pips, another signal that traders see a weaker yuan. The rate of appreciation in the forward curve this month is the quickest since June, when the U.S.-China trade war crossed the Rubicon.

> As a reminder, the further the yuan drops the greater the offset to US import tariffs, and the more likely that the Trump administration will impose even greater sanctions in the future as it sees Chinese monetary policy as specifically targeted to undermine the impact of Trump's trade war including manipulating its currency.

Brad Setser on China Reserves

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What's Next?

No Red Lines

Whatever red lines there were, vanished in the trade war.

Mike "Mish" Shedlock

New Record Low Yields on 10- and 30-Year Bonds: Double Cut?

Treasury yields continued a massive plunge today with new record lows. I sense a double rate cut by the Fed on March 18.

Forget the Yuan: King Dollar is Here to Stay

Many believe deficit spending will kill the US dollar as a reserve currency and the yuan will take over. They are wrong.

Counteracting Tariffs via Sinking Yuan: What Would It Take?

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Petro-Yuan Futures Launch in March: Ignore the Hype, It's a Good Thing

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Hello Treasury Bears: 10-Year Bond Yield Approaching Record Low Yield

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Gold-Backed Petro-Yuan Silliness: Reserve Currency Curse?

A massive amount of hype is spreading regarding China's alleged ambitions to dethrone the dollar. The story this time involves China's plan is to price oil in yuan using a gold-backed futures contract. Even if that were true, the impact would be zero. Nonetheless, CNBC is now in on the hype.

Investigating the Claim "Gold Demand Slumps to a 10-Year Low"

A Fox Business report states demand for gold is at a 10-year low. What's the real story?

Orders at Boeing Drop to a 16-Year Low

New plane orders at Boeing are the lowest since 2005 and deliveries the lowest since 2005. Blame the Boeing 737 Max.

Cass Year-Over-Year Freight Index Sinks to a 12-Year Low

Year-over-year, the Cass shipping index turned in its worst performance since the Great Recession.