One day after we reported that China’s overnight money market rate jumped to the highest in 15 months amid i) continued drainage of liquidity by the PBOC and ii) a warning by a PBOC advisor that asset bubbles have formed in the stock and property markets, China's overnight repo spiked even higher, surging to its highest since March 2015, as investor jitters over liquidity mounted due to the central bank’s accelerating withdrawals. {chart} The overnight repurchase rate rose 23 bps to 3% on Wednesday and a further 4bps to 3.04% on Thursday, taking the increase this week to 59 basis points. Such increases in January - ... (full story)