The USD/CNY forex swaps stay at elevated levels as yuan liquidity conditions tighten following a big convertible bond sale, which may have locked up CNY300-400 billion. Subscription to China Shipbuilding Industry's CNY8.05 billion convertible bond offering starts Monday. The one-year USD/CNY forex swaps are trading at a premium of 279 pips from the spot vs a 285 pip premium late Friday in Asia. The benchmark seven-day repo rate is 15 bps higher at 2.53%. However, the traders say the swap premiums will likely remain in a 200-300 pips range as the PBOC will likely announce fresh measures to keep yuan liquidity ample. The USD/CNY spot is at 6.3645 vs 6.3690 late Friday in Asia. Offshore, one-year USD/CNY NDFs are quoted at 6.4325/6.4375 vs 6.4330/6.4360.
Find us on Google+
No comments:
Post a Comment