Business / Markets

Swap rate rises the most in 11 months

(China Daily) Updated: 2012-08-21 10:40

China's one-year interest-rate swap rate has risen the most in 11 months on signs the central bank won't lower lenders' reserve requirements as property prices rebound.

The People's Bank of China gauged demand on Monday for 14-day reverse-repurchase contracts, according to a trader required to bid at the sales. The resumption of 14-day contracts last week suggests the monetary authority has no intention of cutting reserve ratios in the short term, according to a commentary published on Saturday in the Financial News.

The one-year swap contract - the fixed cost needed to receive the floating seven-day repurchase rate - jumped 16 basis points to 3.07 percent as by 5:02 pm in Shanghai, the biggest increase since September, according to data compiled by Bloomberg.

China Daily-Agencies

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