Caixin
Sep 16, 2022 03:49 PM
FINANCE

China’s Swap Markets Signal Near-Term Easing Bets Are Fading

China’s attempts to cap the yuan’s weakness are spurring bets it may hold off large monetary easing steps in the near term. Photo: Bloomberg
China’s attempts to cap the yuan’s weakness are spurring bets it may hold off large monetary easing steps in the near term. Photo: Bloomberg

(Bloomberg) — China’s bond traders are growing less optimistic about the prospects for more monetary easing, if the derivatives markets are anything to go by.

The nation’s one-year interest rate swaps, which show investor expectations of funding costs in the future, climbed for the seventh straight day Friday in their longest rising streak since August 2019. That’s because China’s persistent attempts to cap the yuan’s weakness are spurring bets it may hold off large monetary easing steps in the near term, even as the economy sputters under the weight of Covid lockdowns and a housing market collapse.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code