China onshore IRS are lower on profit-taking ahead of a major holiday, and on expectations that the central bank may cut the reserve requirement ratio for banks. The one-year IRS is down 2 bps at 2.60%-2.70%, and the five-year IRS is down 4 bps at 2.81%-2.91%. "Swaps have been rising for a while and it's safer to take profit now in case the PBOC rolls out some fresh easing policies during the holiday," says a Shanghai-based foreign bank trader. The one-year swaps have risen by around 30 bps in the last 2 weeks. China's financial markets will be closed from Friday to Sunday.
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