SHIBOR: Overnight Rate Rises 3.10 Basis Points to 1.4040%

The overnight rate closing above the 7-day rate is the notable wrinkle here: the shortest tenor, normally the cheapest, is now the most expensive on the curve, while the 3-month sits unchanged. That combination points to a front-end funding squeeze rather than a shift in medium-term rate expectations, and it is the kind of move that tends to surface around quarter-end, tax periods or large settlement dates. Whether the inversion unwinds quickly or persists into the next fixing is the open question.