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China Swap Rates Drop a 2nd Day as PBOC Signals Cash Injection

China’s one-year interest-rate swaps fell for a second day after the central bank signaled it may inject more cash into the financial system.

The People’s Bank of China asked banks to submit orders for 14-day reverse-repurchase agreements this morning as well as for 28-day repurchase contracts, according to a trader at a primary dealer required to bid at the auctions. The authority added 17 billion yuan ($2.8 billion) to the system yesterday at a yield of 4.4 percent using seven-day reverse repos, the first time it conducted such operations since February.