Dec 11. A few notes
–(Reuters) – Chinese banks extended 1.12 trillion yuan ($169.27 billion) in net new yuan loans in November, well above analysts’ expectations and the previous month. M2 grew 9.1 in Nov, vs expected 8.9. Outstanding yuan loans at the end of November grew 13.3 percent from a year earlier, faster than an expected 13 percent rise.
–Doesn’t appear to be much of a crackdown…
–(Bloomberg) As for the quantitative easing that marks its 10th anniversary in the U.S. next year, Bloomberg Economics predicts net asset purchases by the main central banks will fall to a monthly $18 billion at the end of 2018, from $126 billion in September, and turn negative during the first half of 2019.
–Treasury auctions three and ten year notes today, and 30 yr bonds on Tuesday. PPI and CPI on Tuesday and Wednesday. FOMC announcement and press conference on Wednesday.
–Uneventful Friday except for weakness in EDZ7, which has slightly rebounded this morning to 9840.75. The 9837.5p is still in play with one week left and 985k open
–A couple of week-over-week changes in ED straddles: EDU19 9775 straddle, 51.5 ref 9779.5 on Dec-1, 49.5 ref 9778.0 on Dec-8. 3EU1 9762.5^ 44.0 ref 9759 in EDU21, vs Friday at 44.0 vs 9757.5.
