Total Derivatives: PBoC RRR cut drives CNY disinversion

On Wednesday the People's Bank of China (PBoC) cut its reserve requirement ratio (RRR) by 50bp in a move that the market had not expected to happen until after the Chinese New Year holiday. The shift triggered a flurry of receiving in short-end swaps on Thursday morning and short-end outperformance drove some disinversion momentum across the curve, writes Deirdre Yeung of Total Derivatives.