Overnight SHIBOR Falls 1.90bps to 1.2690%

The split between the overnight and seven-day fixings points to a short-dated funding mix that is loosening at the very front end while the one-week tenor firms slightly, leaving the three-month rate anchored. That divergence matters more for leverage-sensitive carry and short-dated RWA yield products than for longer-duration credit, since it signals where marginal liquidity is concentrating. Whether the overnight rate keeps drifting lower while the seven-day holds firm is the open question.