Yuan Shorts Hit as Funding Costs Up by Most Since 2017
- Daily fixing, tight supply seen as defenses to shore up yuan
- Currency bounces higher after approaching record lows
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Funding costs in China’s offshore market rose by the most in six years amid speculation that authorities in Beijing are making it more expensive to bet against the currency.
One-month offshore yuan swap points — a measure of the costs to borrow the yuan — jumped 1.73 basis points, the most since 2017 as the yuan gained Monday. As a result, the one-month implied yield surged to 5.5% from 2.7% on Friday, according to data compiled by Bloomberg.