The USD/CNY forex swaps are higher, reflecting a higher yuan funding rate. The one-year USD/CNY forex swap is at a premium of 1300 pips from the spot vs 1250 pips late Tuesday. The benchmark seven-day repo rate is 43 bps higher at 3.43%. A Shanghai-based foreign bank trader says the swaps may rise more in the near future as yuan liquidity may tighten further when the month-end comes. The USD/CNY spot is at 6.3264 vs 6.3351 late Tuesday. Offshore, one-year USD/CNY NDFs are down at 6.4158/6.4183 from 6.4228/6.4243 late Tuesday.
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