Reported about 7 hours ago
China's money markets are showing a reversal in expectations for impending monetary easing as traders pull back their bets on interest rate cuts. This shift has led five-year interest-rate swaps to fall below one-year swaps for the first time since September, reflecting concerns that authorities will prioritize stabilizing the yuan instead of loosening policy to boost the economy. The inversion highlights the PBOC's challenging balance between supporting the currency and addressing economic sluggishness, as inflation concerns mount with the consumer price index dropping to 0.1% in December.
Source: YAHOO