China Swap Rate Drops Most in a Week as Cash Supply Seen Ample
This article is for subscribers only.
China’s one-year interest-rate swaps fell by the most in more than a week on speculation interbank cash supply is adequate to meet funding demand.
Aggregate financing, the government’s broadest measure of credit, was 1.23 trillion yuan ($203 billion) last month, more than the median projection of 1.14 trillion yuan in a Bloomberg survey, official data showed today. The People’s Bank of China has refrained from selling reverse-repurchase agreements since Dec. 24, when it pumped 29 billion yuan into the banking system by issuing seven-day contracts at 4.1 percent.