Citi Wealth Insights

CNH: PBoC sees contagion risks surrounding Chinese property developers as “manageable”.

There are important differences between the late 1990s tech boom and where we are now.

Latest weekly update of the CitiFX house views and strategy

JPY: USDJPY closes last week well above 114.00 while Citi analysts note that cost-push inflationary pressures are building in commodity-importer Japan following the rapid increases in energy prices.

SGD: In its meeting yesterday, Singapore’s MAS steepens the SGD NEER (nominal effective exchange rate) slope “slightly” as 3Q21 GDP edges up sequentially to 0.8% QoQ SA, 6.5% YoY (2Q: -1.4% QoQ SA, 15.2% YoY).

USD: Minutes from the September 21-22 FOMC meeting released overnight, confirm that taper is likely to be announced November 3 and proceed at a pace of $10bln/month Treasuries and $5bln/month MBS. Officials discuss starting to taper in mid-November or mid-December, and Citi analysts expect the November start date is slightly more likely. Fed officials see risks to inflation as balanced to the upside but continue to see most elements of inflation as “transitory.”