As for the foreign markets, the Asian and European markets
were roiled a bit when China’s central bank decided to raise
the auction yield on its 3-month bills for the first time since
August. Also, the PBoC said it was set to drain $20 billion
from the market – its largest weekly drain in 11-weeks. Both
of these developments were unexpected, and it now is
giving pause to the fact that monetary stimulus isn’t forever,
and this aggressive draining will continue apace into the
foreseeable future given the enormity of stimulus in China’s