China Swaps Jump Most in One Week as Rate Speculation Revives
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China’s interest-rate swaps jumped by the most in one week on speculation policy makers will boost interest rates after the central bank lifted the yield on one-year bills for a second sale.
The People’s Bank of China sold 2 billion yuan ($309 million) of the securities at 3.4982 percent yesterday, compared with 3.4019 percent at a sale on June 21. Inflation is likely to average 5.3 percent this year, topping the government’s 4 percent target, the Economic Information Daily reported today, citing Li Jianwei, director of the macro economy research institute under the State Council’s Development Research Center.