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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA RATES
Building on the earlier point about liquidity tightness into year end, with upward pressure already evident on the 7-day repo rate, the chart below shows clear convergence between the 7-day repo rate, the 7-day funding rate and its 20-day moving average. As previously mentioned HSBC expects the PBOC will monitor liquidity and adjust OMO's to keep the 7-day funding rate within a band of 2.05%-2.30%. China Securities Journal, a state owned publication, earlier ran headlines saying the PBOC would take measures to ensure liquidity is stable in April.
- Fig.1: China 7-day Funding Rate & 20-Day MA , 7-Day Repo Rate
Source: MNI/PBOC
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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