# Beware Another “Epic” Yuan Squeeze – Heisenberg Report

> Analysts reported that the PBoC had engineered a yuan surge after the onshore spot closed below the fix for 17 consecutive days. Offshore yuan was trading at a discount to onshore, and overnight funding points had turned negative.

- Date: 2017-06-27 · published 2017-06-27T12:00:00.000Z
- Category: policy · region China · magnitude low
- Page: https://feedsoft.ai/events/11186-beware-another-epic-yuan-squeeze-heisenberg-report
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Intervention-driven squeezes in yuan funding markets raise the cost of dollars for Chinese importers, which can weigh on purchases of dollar-priced feed ingredients. The impact on prices is limited and uncertain.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-06-27 | 1 | -0.4% | -3.3 | Describes a PBoC-engineered yuan surge on 2017-06-27 after 17 days of spot closing below the fix, with offshore discount and negative funding points, a plausible mechanism for the abrupt, outsized move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2026-02-27 | [Yuan Snaps Rising Streak After China Cuts Cost to Short Currency - Bloomberg](https://feedsoft.ai/events/7897-yuan-snaps-rising-streak-after-china-cuts-cost-to-short-currency-bloomberg.md) | +0.7% | +1.0% |
| USDCNY | 2021-01-06 | [China moves to curb yuan rally pressure due to hot money and export concerns \| South China Morning Post](https://feedsoft.ai/events/49366-china-moves-to-curb-yuan-rally-pressure-due-to-hot-money-and-export-concerns.md) | +0.1% | +0.3% |
| USDCNY | 2020-10-28 | [Yuan’s Rally Faces Test After Banks Tweak Daily Reference Rate - Caixin Global](https://feedsoft.ai/events/50849-yuan-s-rally-faces-test-after-banks-tweak-daily-reference-rate-caixin-global.md) | -0.4% | -1.9% |
| USDCNY | 2025-05-08 | [China’s yuan slips as PBOC guides currency lower - Markets - Business Recorder](https://feedsoft.ai/events/9620-china-s-yuan-slips-as-pboc-guides-currency-lower-markets-business-recorder.md) | -0.2% | -0.7% |
| USDCNY | 2020-10-28 | [Yuan eases after China tweaks fixing formula to rein in strength \| Financial Post](https://feedsoft.ai/events/50848-yuan-eases-after-china-tweaks-fixing-formula-to-rein-in-strength-financial-post.md) | -0.4% | -1.9% |

## Sources

- heisenbergreport.com: https://heisenbergreport.com/2017/06/27/beware-another-epic-yuan-squeeze/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.