On the same day, South Korea urgently issued a "combination boxing to save the market": the Ministry of Finance of South Korea announced that it would urgently repurchase 2 trillion won bonds on September 30; The Korea Financial Services Commission is preparing to launch a stock market stabilization fund and is studying a plan to ban short selling.
In addition, Wall Street also sent a positive signal. In the face of the epic collapse of the bond market, Jeffrey gundlach, the American billionaire investor, co-founder of Double Line Capital and the "new debt king", has started to bargain-hunting for US Treasury bonds against the trend. In addition, ArjunVij, a fund manager in JPMorgan Chase, also said that in view of the high yield since 20 10, the longer-term sovereign bonds in most developed markets began to look attractive.
U.s. stocks rose across the board overnight, and the Dow Jones index closed up more than 500 points, temporarily leaving the bear market; The Standard & Poor's 500 Index rose nearly 2%, the biggest one-day increase in the past two months; The Nasdaq rose more than 222 points, or 2.05%, to1.65,438+0,000 points. Top stocks followed the US stock market, with ETFKWEB rising by 65,438+0.9% and NASDAQ Jinlong China Index rising by 65,438+0.4%.
Save the market!
When the global financial market is in turmoil, governments all over the world are urgently introducing rescue policies.
On September 28th, local time, the Bank of England issued a statement saying that it would temporarily purchase British long-term government bonds "at any necessary scale" to restore the order of the British bond market.
The statement said that the temporary purchase plan will have strict time limit, and the plan will be implemented from today to 65438+ 10/4. Once it is judged that the market operation risk has subsided, these purchases will exit smoothly and orderly. In addition, the sale plan of British government bonds originally scheduled to start next week will be postponed to 65438+1October 3 1.
Subsequently, the Bank of England announced the operational details, saying that it would purchase traditional British government bonds with a remaining maturity of more than 20 years in the secondary market. In addition, the news shows that the Bank of England bought 65.438+0.25 billion pounds of British debt in the first batch.
The Bank of England's statement clearly exceeded market expectations. After the news was announced, British government bonds soared across the board. Among them, the yield of UK 10-year government bonds plummeted by nearly 60 basis points and once fell below the 4% mark; The yield of 30-year treasury bonds once plunged 120 basis points to 3.869%, which will be a record decline. The yield curves of 10 and 30-year British government bonds are upside down for the first time since 2008.
At the same time, the British stock market also rose sharply. The decline of FTSE 100 index narrowed from 2% to 0.2%, and finally closed up by 0.3%. European stock markets also rebounded. The exchange rate of the pound against the US dollar also rebounded sharply, with the highest increase exceeding 180 points, once rising above 1.09, fully recovering this week's decline and rebounding more than 370 points from the daily low.
On the same day, South Korea also urgently introduced a "combination boxing to save the market".
On September 28th, South Korea's National Business Daily reported that in order to stabilize the stock market, South Korea is studying a plan to ban short selling.
In addition, according to Korean media reports, the Korea Financial Services Commission has begun to prepare to start the stock market stabilization fund when the stock market sells off.
At the same time, South Korea's Ministry of Finance will urgently buy back 2 trillion won bonds on September 30, and the details will be announced after the market closes on Wednesday. South Korea's Ministry of Finance said it would actively consider taking measures to ease the volatility of corporate bonds and the stock market.
According to the report, last Friday (September 23rd), after Kim Su Rong, vice chairman of the Korea Financial Services Commission, asked for measures to ease the market turmoil, the Commission held a meeting of heads of relevant departments.
Behind the emergency rescue in South Korea, the financial market in South Korea fluctuated violently, and a tragic "share-exchange double kill" was staged. Among them, the Korean stock market fell by 28% during the year, which was more than 32% lower than the high point in June 20021. The won also depreciated sharply. After the Federal Reserve raised interest rates, the exchange rate of the Korean won against the US dollar fell below the key mark 1400: 1. This week, the Korean won continued its downward trend, and the current quotation is 1445.04 USD, the lowest since March 2009.
The dilemma of British female prime minister
At present, Liz Trass, the British female prime minister who just took office for three weeks, is facing a rare financial market storm.
Since Trass took office, the British stock and bond market has evaporated by more than 500 billion US dollars (about 3.6 trillion yuan).
Specifically, in the past three weeks, more than 654.38+07 billion US dollars have evaporated in government bond index, UK, and investment-grade bonds denominated in pounds (corporate bonds with S&P rating of BBB or above) have lost more than 29 billion US dollars, while junk bonds denominated in pounds (corporate bonds with S&P rating of BB or below) have fallen by 654.38+04 billion US dollars.
Looking at the British stock market, the FTSE 350 index, as a barometer of the British economy, fell by 4.5% during this period, and its market value evaporated by more than $300 billion.
Perhaps even more tragic is the British foreign exchange market. During the Asian session on September 26th, the pound fell dramatically and historically, and plunged nearly 5% that day. The pound hit a low of 1.03 against the US dollar, the lowest in the last 50 years, infinitely close to the parity between the pound and the US dollar. As of press time, the exchange rate of the pound against the US dollar was reported as 1.0844, and the depreciation rate during the year exceeded 22%.
In the face of the epic devaluation of the pound, British Sky News reported on the 28th that the new British Chancellor of the Exchequer Quarten was trying to calm the market sentiment and asked financiers not to short the pound.
But in this regard, some of the world's top economists have warned that the devaluation of the pound may be far from over as the country's asset prices continue to fall.
Market analysts believe that the direct cause of this "historic plunge" is that the British government has launched a tax reduction plan, amounting to 220 billion pounds, aimed at stimulating economic growth through tax cuts. If the tax reduction plan is implemented as scheduled, it will be the largest tax reduction since the 1970s.
On September 27th, local time, the International Monetary Fund (IMF) publicly responded to the British government's new tax cuts for the first time. The IMF criticized these measures as "not targeted", which may not only aggravate the inequality in Britain, but also undermine monetary policy.
Former US Treasury Secretary Summers even bluntly said that this policy made Britain look like a third world country, which would cause the exchange rate of the pound against the US dollar to fall to parity.
It is worth mentioning that Trass has always regarded himself as the successor of Thatcherism, trying to emulate Mrs. Thatcher's tax cuts to revive the British economy. On the 27th local time, Trass personally defended that among the G7 countries, Britain is one of the countries with the lowest debt level, but the tax level is the highest. It further stated that the British authorities are most concerned about encouraging enterprises to invest and helping people solve tax problems.
The heavy signal of Wall Street
Britain and South Korea may be just a microcosm of the turmoil in global financial markets. At present, the global national debt market is experiencing the worst plunge in decades.
Recently, the latest report of Bank of America warned that the global national debt market has fallen into "the third largest bond bear market in history", and the current situation is worse than the previous two.
A recent study by Deutsche Bank dating back to 1786 also shows that the global bond market is now in the first bear market in 76 years after falling 20% from its peak. The last time the global bond market suffered such a tragic selling tide, it was still traced back to 1946, which was the second year after the end of World War II.
Among them, the selling tide in the US bond market is the fiercest. During the Asian trading session on September 28th, the yield of 10-year US Treasury bonds once exceeded 4%, rising to the highest since June 2008, and now it is reported as 3.737%, which is more than 220 basis points higher than that of 1.5 1% in early 2022.
It should be pointed out that the bond yield is the reverse indicator of the bond price, and the increase in the yield means that the bond price falls and the bondholders lose money.
In the face of the epic collapse of the bond market, JeffGundlach, an American billionaire investor, co-founder of double-line capital and "new debt king", has begun to bargain-hunting US Treasury bonds against the trend.
On Tuesday morning local time, gundlach tweeted, "The US Treasury bond market is rebounding tonight. I have been buying recently. "
At that time, the price of US Treasury bonds once rebounded. After the yield rose to 3.9% for the first time since 20 10 on Monday, the yield of 10-year US Treasury bonds once fell by 10 basis point to 3.8 13%. On September 28th, the yield of 10-year US Treasury bonds fell by 32 basis points to 3.737%, the biggest drop since 2009.
In fact, gundlach advised investors to buy long-term treasury bonds in September this year. He said that the current deflation risk is much higher than that in the past two years, which has become a greater threat, and hinted that the aggressive austerity actions of the Federal Reserve will slow down economic growth.
In addition, ArjunVij, a fund manager in JPMorgan Chase, also said that in view of the high yield since 20 10, the longer-term sovereign bonds in most developed markets began to look attractive. The market expects inflation to ease in the next few years, so such bonds are very attractive.
However, ArjunVij pointed out that the risk of short-term bonds may be higher considering the market's expectation of further sharp interest rate hikes by central banks. According to the swap market, the Federal Reserve is expected to raise interest rates by 75 basis points for the fourth consecutive time in June 5438+065438+ 10, while the Bank of England is expected to raise interest rates at least twice this figure.
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