20 Jan 2014
China money rates tighten up, 7-day repo break above 6%
FXstreet.com (Bali) - China credit market is going through some pressure this Monday ahead of the Chinese new year next week, which will see markets in China closed from January 31 to February 6.
The 7-day repo rate is currently trading at 6.42% vs a close of 5.17% last Friday, with the current rate more than 2% higher than a week ago, when it traded around the 4% vicinity. Meanwhile, the 1-day repo rate stands at around 4% vs 2.98% last Friday.
Market chatter is that tight condition are set to extend into new year celebrations, which may risk another episode of a liquidity type squeeze as seen last June or December, unless the the PBOC shows its magic bank by providing STLOs (Short Term Liquidity Operations).
The 7-day repo rate is currently trading at 6.42% vs a close of 5.17% last Friday, with the current rate more than 2% higher than a week ago, when it traded around the 4% vicinity. Meanwhile, the 1-day repo rate stands at around 4% vs 2.98% last Friday.
Market chatter is that tight condition are set to extend into new year celebrations, which may risk another episode of a liquidity type squeeze as seen last June or December, unless the the PBOC shows its magic bank by providing STLOs (Short Term Liquidity Operations).