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Global companies are issuing record amounts of yuan-denominated bonds and borrowing heavily from mainland banks to take advantage of low yuan interest rates. The yuan has become the second-biggest trade funding currency.
Cheap yuan funding supports trade finance flows but has little direct effect on feed commodity supply or demand, so the impact on prices is minimal.
reuters.comSamuel Shen, Rae WeeNov 17, 2023After 991 past macro events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (49% higher; middle half -0.3% to +0.3%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
