The overnight Treasury bond repo rate on the Shanghai Stock Exchange (SSE) skyrocketed by over 300 percent during intra-day trading on Friday. But it retreated quickly toward the market close and finally ended 94.85 percent higher at 3.215.
Traders attributed the abnormal spike to new initial public offerings on the Shanghai and Shenzhen bourses this week, which locked up 6-7 trillion yuan of funds from subscribers.
Besides, investors have rising cash demand ahead of Dragon Boat Festival, which also to some extent drove up capital prices. The benchmark 7-day Interbank Offered Rates (Shibor), a quasi of Libor, climbed 19.60 bps to 2.674 percent by Friday close.
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