China Swaps Rise for 3rd Week as Cash Hoarded Before Month End

China’s one-year interest-rate swaps climbed for a third week on speculation cash supply will wane as banks meet month-end capital requirements.

People’s Bank of China Governor Zhou Xiaochuan wrote in the People’s Daily today that the nation will continue with prudent monetary policy and keep a “reasonable” amount of money supply and credit. Money-market rates reached a record high last month due to a cash squeeze. A total of 85 billion yuan ($13.9 billion) of central bank bills will mature next week, compared with zero this week, data compiled by Bloomberg show.