Money rates surge as banks move to meet cash demand
The benchmark money-market rate for the country climbed a seventh day, and interestrate swaps rose as banks hoarded cash to meet year-end regulatory requirements. The seven-day repurchase rate, a gauge of funding availability in the banking system, jumped 124 basis points on Monday to 8.84 percent, the highest level since June 20, according to a daily fixing from the National Interbank Funding Center. The rate, which has more than doubled from 4.37 percent in the past week, touched a record 10.77 percent in June. “Banks’ cash demand to meet regulatory requirements by year-end will mean rates may stay elevated for another week or so,” said Yang Kun, a Shanghai-based analyst at Guotai Junan Securities Co.