China onshore IRS fall sharply after the State Council repeated late Wednesday its pledge to give bigger priority to economic growth. Also weighing on swaps, data showed HSBC China Preliminary PMI fell to 48.7 in May from a final reading of 49.3 in April, stoking concerns the Chinese economy could slow sharply. The one-year IRS is down 28 bps at 2.40%-2.50%, the lowest level since April, 2010 and the five-year IRS is 23 bps lower at 2.73%-2.83%. "The short-ends may bottom out, but long-ends could fall further if outlook global and domestic economic conditions turn ugly," says a Beijing-based local bank trader. The benchmark seven-day repo rate is 21 bps lower at 2.23%.
Find us on Google+
No comments:
Post a Comment