Interbank yuan lending rates in Hong Kong climbed to records across the board after suspected intervention by China's central bank last week mopped up supplies of the currency in the offshore market.
The city's benchmark rates for loans ranging from one day to a year all set new highs, with the overnight and one-week surging by the most since the Treasury Markets Association started compiling the fixings in June 2013. The overnight Hong Kong Interbank Offered Rate surged 939 basis points to 13.4 percent on Monday, while the one-week rate jumped 417 basis points to 11.23 percent. The previous highs were 9.45 percent and 10.1 percent, respectively.
"Yuan liquidity is extremely tight in Hong Kong," said Becky Liu, senior rates strategist at Standard Chartered PLC in the city. "There was some suspected intervention by the People's Bank of China last week, and the liquidity impact is starting to show today."
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