Yesterday we pointed out a sharp rise in money market rates in China.
The Shibor fix for June 21 shows that the overnight Shibor is down 495.20 basis points to 8.4920%. This compares with 578.40 basis point increase yesterday to 13.44%.
Here’s a quick look at today’s quote, and yesterdays.
SHIBORBloomberg reported earlier that money market rates had declined after the People’s Bank of China injected 50 billion yuan through short-term liquidity operations. The one day repo fell 384 basis points to 7.90%, the biggest drop since 2007.
But there isn’t much reason to celebrate.
Just because PBOC made this problem “go away” for the moment, doesn’t mean the real problem is solved.
— Patrick Chovanec (@prchovanec) June 21, 2013
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