China’s one-year interest-rate swaps dropped by the most in almost three weeks as a slowdown in industrial growth spurred speculation the central bank will loosen policy.
Factory output rose 6.9 percent last month, the least since the 2008 global financial crisis, while fixed-asset investment and retail sales missed estimates, official data showed over the weekend. China should continue with its mini-stimulus, given the downward pressure on the economy, the Shanghai Securities News reported today, citing Chen Yulu, an academic adviser to the central bank.
The cost of one-year interest-rate swaps, the fixed payment to receive the floating seven-day repurchase rate, fell four basis points, the most since Aug. 26, to 3.57 percent as of 10:17 a.m. in Shanghai, data compiled by Bloomberg show.
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