Offshore Yuan Funding Cost Surges Ahead of Dim Sum Bond Auction
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Offshore yuan funding costs jumped to the highest in 16 months as investors set aside cash for a yuan-denominated China government debt sale in Hong Kong.
The one-week yuan borrowing cost in Hong Kong’s interbank market, known as Hibor, rose above 7 percent for the first time since June 2017. The premium of that rate over the one-month version soared to 71 basis points, also the highest since June last year.