China Swap Touches Nine-Month Low on Bets Policy to Stay Loose

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The cost of locking in China’s interest rates touched the lowest level since June on speculation the central bank will ensure an adequate cash supply to counter a slowdown in economic growth.

The one-year interest-rate swap, the fixed payment needed to receive the floating seven-day repurchase rate, rose two basis points to 3.80 percent as of 4:13 p.m. in Shanghai, data compiled by Bloomberg show. The rate touched 3.72 percent earlier, the lowest level since June 26, and has dropped 50 basis points, or 0.5 percentage point, in eight days.