China’s Overnight SHIBOR Falls to 1.3640%

The near-flat move across tenors matters less for its size than for what it says about the shape of the curve: overnight, 7-day and 3-month rates are now clustered within a few basis points of each other, a compressed profile that signals ample short-term liquidity rather than any directional shift in policy. That compression has knock-on effects for carry and funding costs in yuan-denominated trades, including the crypto and RWA desks that borrow offshore against onshore rate benchmarks. Whether the curve stays this flat, or the 3-month leg re-steepens, is the open question worth tracking.