China’s interest-rate swaps rose as a manufacturing gauge for June suggested Asia’s largest economy is recovering.
The cost of one-year swaps, the fixed payment needed to receive the floating seven-day repurchase rate, climbed two basis points to 3.48 percent as of 10:43 a.m. in Shanghai, data compiled by Bloomberg show. The rate reached as high as 3.49 percent after the factory output report was released, and has fallen 81 basis points this quarter.
HSBC Holdings Plc and Markit Economics’ preliminary Purchasing Managers’ Index was 50.8, more than the median estimate of 49.7 in a Bloomberg survey and the first time this year it has been above 50, the dividing line between expansion and contraction. The central bank cut reserve ratios for some lenders this quarter, while the government outlined a package of spending on railways and shantytown redevelopment, as well as expanding tax relief for micro-enterprises and exporters.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.