China Borrowing Cost Rises to Four-Year High on Cash Demand
- Overnight repurchase rate has surged over past three sessions
- April and May a peak time for tax payments: Hua Tai Securities
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The overnight borrowing cost in China’s money market rose to a four-year high as cash supply tightened just as tax payments increased demand for liquidity.
The overnight repurchase rate rose as much as 11 basis points to 3.0006 percent, the first time it’s reached that level since April 2015. The measure pared the gain to 2.9974 percent as of 3:20 p.m. in Shanghai. It has jumped 35 basis points in three sessions, and is higher than the seven-day rate, which fell to 2.7905 percent.