China Rate Swaps Drop Most Since June as Some Reserve Ratios Cut

China’s interest-rate swaps fell by the most since June after the government said it will lower reserve-requirement ratios at some rural banks.

The cost of the one-year rate swap, the fixed payment needed to receive the floating seven-day repurchase rate, dropped 18 basis points to 3.86 percent as of 4:47 p.m. in Shanghai. It reached 3.81 percent earlier, the lowest since July 9, according to data compiled by Bloomberg.