It’s Beijing’s turn to sound the bubble alarm: China is likely to see further monetary tightening amid threats arising from “large bubbles” in China’s property and global financial markets, the country’s chief banking regulator has said, according to the Financial Times. “I’m worried the bubble problem in foreign financial markets will one day pop,” he said. “China’s market is now highly linked to foreign markets and foreign capital continues to flow in.”

Turbulence in the US treasury market has exacerbated concerns that the world’s largest debt market — worth USD 21 tn — may be in need of restructuring, the Financial Times reports. A bond sell off last week saw treasury yields soar, prompting big traders to back away from the market and causing a temporary liquidity shock in what is normally one of the most liquid markets in the world. This has prompted calls for regulators to come up with solutions to support the increasingly fragile market, especially as the end of covid-era measures that eased capital requirements for banks threatens to leave it with fewer buyers.

The EGX30 fell 0.7% yesterday on turnover of EGP 1.59 bn (8% above the 90-day average). Foreign investors were net sellers. The index is up 5.05% YTD.

In the green: Sidi Kerir (+0.7%), EKH (+0.6%) and CIB (+0.5%).

In the red: Pioneers (-7.6%), MM Group (-6.3%) and Orascom Financial (-5.9%).

Asian markets are down in early trading this morning and futures suggest US markets will follow suit later today.