Inter-bank liquidity extremely tight ahead of Spring Festival

China’s Money-Market Rate Jumps to Six-Month High Before New Year Holiday
The People’s Bank of China injected 169 billion yuan ($26.8 billion) into the financial system via 14-day reverse-repurchase contracts at 5.47 percent today, according to a statement posted on its website.
The seven-day repurchase rate, a gauge of funding availability in the financial system, increased 98 basis points, or 0.98 percentage points, to 7.15 percent in Shanghai, according to a weighted average compiled by the National Interbank Funding Center. That was the highest since July 6. The one-year swap contract, the fixed cost needed to receive the repo rate, rose four basis points to 3.14 percent in Shanghai, according to data compiled by Bloomberg. The yield on the 3.93 percent government bonds due August 2021 added one basis point to 3.42 percent.
How about the SHIBOR rates?

The last graph of the 1 year SHIBOR shows that the Chinese New Year affect is limited to the short end, but still, as the Chinese say, 哇塞!

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