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ForexLive Asia-Pacific FX news wrap: China announces significant property sector support

China
will loosen restrictions on Chinese developers’ financing with
changes to the “Collective management system for real estate
loans” on banks and also on the “Three Red Lines” policy.
These changes had been flagged and reported on earlier which meant
rises on Chinese stockmarkets were limited. As I update:

China
will add another 150 bln yuan in special loans for securing project
deliveries and will issue further policies to support housing rental
market including a 100bn yuan housing rental loan plan.

In
central bank news the Bank of Japan intervened in the Japanese
Government Bond market yet again with another unscheduled purchase
operation. The Bank’s hand was forced by yields on JGBs continuing
to rise. The 10 year JGB hit 0.535%, well above the BOJ’s 0.5%
permitted ceiling.

Also,
the Bank of Korea hiked its key rate by 25bps today. This brings the
total of hikes from the South Korean central bank to 300bp (i.e. 3%)
during this cycle. There have been 10 rate hikes since beginning in
August of 2021.

Major
FX traded in limited ranges. Friday the 13th is often a
subdued day in Asia, this one especially so as traders seemed content
to drift into the weekend after expending so much energy on the US
CPI and the market response.

Not a lot of movement in USD/JPY:

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