China Fast Figure: Shibor by Duration

Downward momentum in some durations underscores loosening PBOC policies

A rolling 12 month look at SHIBOR durations shows a downward shift of 1M, 6M and 1Y durations. The ON duration is on par with 1M after dipping to a rolling 12 month low of 1.42. We believe this means credit, and as a result money, is easier to come by, enabled by looser PBOC policies. The primary risks are releveraging and shrinking spreads against USD denominated debt.