SHIBOR goes through the roof

With no explanation, the SHIBOR went through the roof in Shanghai, confirming — after the failure of bond sales by the government — that liquidity is getting tight and that something is smelling fishy:

Expect the liquidity trap to have serious impact on every asset market as cash-strapped banks hoard RMB in China.

Also expect the EURIBOR to go through the roof with the next round of confidence issues as banks won't come clean on all the Greek and Portuguese debt they hold on their balance sheet.