Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

China Swaps Drop on Bets PBOC to Help Meet Year-End Cash Demand

Don't Miss Out —
Follow us on:

Dec. 12 (Bloomberg) -- China’s interest-rate swaps fell for a second day on speculation the central bank will add enough funds to the financial system via reverse-repurchase operations to meet year-end cash demand.

The People’s Bank of China injected a net 11 billion yuan ($1.8 billion) into the financial system last week. The monetary authority gauged demand for a sale of seven- and 14-day reverse-repo contracts tomorrow, according to a trader at a primary dealer required to bid at the auctions.

“In the near term, money-market rates will still be determined by the PBOC’s reverse repos, and banks will probably keep sufficient funding for the year-end,” said Weisheng He, a Shanghai-based strategist at Citigroup Inc. “I don’t expect much volatility in the money market around year-end.”

The one-year interest-rate swap, the fixed cost to receive the seven-day repo rate, dropped three basis points, 0.03 percentage point, to 3.33 percent in Shanghai, according to data compiled by Bloomberg.

China’s upcoming central economic work conference will leave policies unchanged, China Business News reported today, citing an unidentified person. The meeting, at which officials may set the 2013 growth goal, could be held this month, China Business News reported Nov. 26.

The seven-day repurchase rate, a gauge of interbank funding availability, declined two basis points to 3.01 percent in Shanghai, according to a weighted average compiled by the National Interbank Funding Center.

To contact the reporter on this story: Kyoungwha Kim in Singapore at kkim19@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.