Repo-linked renminbi floaters fail to excite investors
Muted demand dents China’s hope for repo fixing to become debt market’s benchmark of choice
China’s plans for a repo-based benchmark to act as its preferred fixing in domestic financial markets have been dealt a blow, with dealers reporting a lukewarm market reception for bonds referencing the rate.
Export-Import Bank of China issued the first floating rate note pegged to the Depository Institutions Repo Rate (DR) last December. The 3 billion yuan ($460 million) six-month note priced at 2.6%, a 44 basis point spread over seven-day DR.
“The secondary liquidity for this floating rate
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