Forex Flash: ‘We commend receiving CNY 1M Forward 1Y Repo ND IRS’ - RBS

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FXstreet.com (San Francisco) - RBS explains: "The front-end of the repo ND IRS curve has steepened on China's improving growth outlook and higher-than-expected December 2.5% inflation print -- even as market liquidity remains accommodative and the 7D repo fixed low, currently at 2.80%."

RBS continues: "We think liquidity conditions will remain salutary, too - probably even through Lunar New Year holiday - as the PBoC lends money to the market as needed via reverse repos. This will not only help anchor the 1M portion of the ND IRS curve, it will drive down the forward pricing on the curve which, at present, runs at levels too elevated to the 7D repo fix."



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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