China Flash PMI Beats Estimates as China Swap Rate Gains Again

China’s interest-rate swaps rose for a third day as manufacturing data that beat estimates added to speculation authorities won’t need to implement major stimulus.

A preliminary Purchasing Managers’ Index for October released today by HSBC Holdings Plc and Markit Economics was 50.4, exceeding the median estimate of 50.2 in a Bloomberg News survey and matching September’s final reading. That followed official reports on Oct. 21 showing third-quarter economic growth and industrial production in September were higher than analysts’ expectations.

The cost of one-year swaps, the fixed payment to receive the floating seven-day repurchase rate, rose one basis point to 3.11 percent as of 10:19 a.m. in Shanghai, data compiled by Bloomberg show. The rate has climbed 15 points since touching a two-year low of 2.96 percent on Oct. 21.

Bloomberg

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