Total Derivatives: 5y bid steepens CNY swap curve

The five year sector of the CNY swap curve picked up a bid on Thursday as foreign players placed bets on a corrective steepening in the 2s/5s curve slope. Credit Suisse expects the People's Bank of China (PBoC) to alleviate money market stress by delivering a 50bp cut in the reserve requirement ratio (RRR), writes Deirdre Yeung of Total Derivatives.