China Rate Swaps Drop to Levels Not Seen Since ’08 as PBoC Eases Cash Squeeze

When policy makers start panicking markets stop panicking.  So May doomsayers on China (FXI, quote) right now and frankly there is little different being said by PBoC than they ever have. 

China’s short term rates have come way in tonight with China 1 year swaps touching a record 5.06% for June 20^th. 

The 1 year China swaps dropped by 36 BPS to 3.71% its lowest level since June 14.