# Surprise China MLF rate rise weighs on bonds; yuan and money rates fall | Reuters

> China's central bank unexpectedly raised the interest rate on medium-term loans, which weighed on bond prices. The yuan weakened after the PBOC set a weaker daily fixing of 6.8596 per dollar, in response to a rebound in the US dollar.

- Date: 2017-01-25 · published 2017-01-25T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/73175-surprise-china-mlf-rate-rise-weighs-on-bonds-yuan-and-money-rates-fall-reuters
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Tighter Chinese liquidity and a softer yuan can dampen commodity import appetite and make dollar-priced feed inputs more expensive for China. The price effect on feed ingredients is likely modest.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-10-13 | [China: Behind CNY’s surprise fall - RBS — Octa](https://feedsoft.ai/events/5889-china-behind-cny-s-surprise-fall-rbs-octa.md) | +0.3% | +0.9% |
| USDCNY | 2024-07-25 | [China central bank surprises by lending again at lower rates \| Reuters](https://feedsoft.ai/events/7521-china-central-bank-surprises-by-lending-again-at-lower-rates-reuters.md) | -0.6% | -1.8% |
| USDCNY | 2024-03-22 | [China yuan slides to four-month low, state banks step in \| Reuters](https://feedsoft.ai/events/31441-china-yuan-slides-to-four-month-low-state-banks-step-in-reuters.md) | +0.4% | +0.5% |
| USDCNY | 2022-08-25 | [Inflation-hit world cheers China’s falling yuan \| Reuters](https://feedsoft.ai/events/40261-inflation-hit-world-cheers-china-s-falling-yuan-reuters.md) | +0.5% | +3.2% |
| USDCNY | 2016-06-30 | [China's yuan sees biggest quarterly fall on record](https://feedsoft.ai/events/12456-china-s-yuan-sees-biggest-quarterly-fall-on-record.md) | +0.7% | +0.3% |
| DXY | 2016-06-30 | [China's yuan sees biggest quarterly fall on record](https://feedsoft.ai/events/12456-china-s-yuan-sees-biggest-quarterly-fall-on-record.md) | +0.6% | +0.8% |
| DXY | 2023-05-11 | [Oil falls 2% on weak US and Chinese economic data \| Reuters](https://feedsoft.ai/events/36104-oil-falls-2-on-weak-us-and-chinese-economic-data-reuters.md) | +0.9% | +0.8% |
| DXY | 2023-06-23 | [Stocks fall, dollar up as investors weigh more rate hikes \| Reuters](https://feedsoft.ai/events/35674-stocks-fall-dollar-up-as-investors-weigh-more-rate-hikes-reuters.md) | +0.6% | -0.7% |

## Sources

- reuters.com: https://www.reuters.com/article/markets/surprise-china-mlf-rate-rise-weighs-on-bonds-yuan-and-money-rates-fall-idUSL4N1FF1MP/

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