Short-Term CNH Hibor Rates Slip -- Market Talk
15 September 2016, 04:01
0401 GMT [Dow Jones] The cost for banks in Hong Kong to borrow yuan from each other overnight comes down Thursday but remains well above the 1-2% range that is considered normal. The overnight CNH Hibor rate is set at 7.95% in its daily fix from 8.16167% Wednesday, while the one-week rate is set at 8.99083% versus 10.152% yesterday. Market participants watch the overnight rate closely since it dictates the cost of betting against the offshore yuan with borrowed money, a trade known as shorting. The overnight CNH Hibor rate surged above 66% at the start of the year, essentially preventing speculators from making such bets. (saumya.vaishampayan@wsj.com; @saumvaish)
(END) Dow Jones Newswires
September 15, 2016 00:01 ET (04:01 GMT)
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