◂ Event Timeline

Jan 1, 2025MACROChina

Yuan pressured by depreciation expectations; long-term yields fall to record lows

The yuan came under pressure from expectations of depreciation, while Chinese long-term government bond yields fell to record lows on monetary easing expectations. The yield gap with the US widened to its largest level in 22 years.

WHY IT MATTERS

Weak yuan and easing expectations point to continued pressure on Chinese currency and import purchasing power, which can soften demand for US and Brazilian feed commodities.

AFFECTSChinese Yuan (CNY per USD)▲

SOURCE
reuters.comSummer ZhenJan 1, 2025

Price reaction & history

Chinese Yuan (CNY per USD)▲bullishSO FAR1d +0.0%5d +0.4%20d -0.8%

After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.

Jan 6, 2022China's yuan eases on hawkish Fed, warning of depreciation pressure | Reuters-0.1%
Aug 15, 2017Analysis: Yuan's strength against the dollar fails to snuff out depreciation expectations-0.1%
Jan 5, 2022PBOC-backed newspaper warns of yuan depreciation pressure in 2022 | Reuters+0.0%
Jan 31, 2024China’s yuan eases after PMI, dragged by falling bond yields - Markets - Business Recorder+0.2%
Dec 11, 2023China’s yuan weakens to 3-week low, hurt by deflation signs - Markets - Business Recorder-0.7%

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.

Chinese Yuan (CNY per USD) USDCNY · GP ▸

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