Economics
China's Rate Swaps Rise to One-Year High as Stimulus Bets Fade
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China’s interest-rate swaps rose to a 12-month high on bets a pick-up in economic growth and signs of speculative trading in commodities and property will prevent the central bank from adding to stimulus.
The cost of one-year swaps, the fixed payment to receive the floating seven-day repurchase rate, increased six basis points to 2.62 percent at 4:30 p.m. in Shanghai, the highest since April 2015. The People’s Bank of China will keep benchmark interest rates on hold until the fourth quarter, according to economists in an April 15-20 survey.