China Overnight SHIBOR Rises 0.31 Basis Points to 1.2891%

The split is the signal: overnight funding tightened while the one-week and three-month tenors eased, leaving the curve steeper at the front end. That divergence points to a short-lived liquidity squeeze rather than a shift in the broader easing trend, since the longer tenors that better reflect funding conditions kept drifting lower. The read-across for risk assets is limited unless the front-end pressure persists. Whether the overnight rate keeps climbing while longer tenors stay soft is the open question.