The QE repo distortion is uncharted territory for funding markets: Scott Skyrm noted on his blog earlier this week that it took only six months of Fed QE purchases to move GC rates from an average of 0.24 per cent in December 2012 to an average of 0.05 per cent this month. There is says Izzy, consequently, a growing distortion in the short-term funding markets, which is clearly one of the first unintended consequences of the QE programmes to surface. Bo Xilai was charged today with several counts of corruption and abuse of office: The former high-flying Chinese politician's dramatic purge last year sparked the most serious political upheaval in the country in decades. China announced a "mini-stimulus" which, though limited in size, could herald more policy moves to prop up growth. Yuan forwards weaken as Central Bank lowers reference rate: Twelve-month non-deliverable forwards dropped 0.14 percent to 6.2815 as of 4:57 p.m. in Hong Kong, trading at a 2.3 percent discount to the onshore spot rate, which rose 0.02 percent to 6.1347, China Foreign Exchange Trade System prices showed. Facebook beats: Shares leapt as much as 20% in after-hours trade as it reported ad sales rose. Markets: The global equity rally is struggling for momentum as lingering concerns about the pace of China's economic growth, alongside a fresh spike in bond yields and mixed corporate earnings, encourages the paring of "riskier" bets. The US benchmark index is having difficulty breaching the 1,700 level for the first time, and this reticence seems to be impacting global sentiment writes the FT's Global Markets codebreaker Jamie Chisholm.