Investing.com - The People's Bank of China lowered the rate on the 14-day repurchase agreement on Thursday to 3.50% from 3.75%, sending money market rates tumbling.
One year interest rate swaps fell to 3.46% after the news from 3.51% while five-year swaps were down at 3.75% from 3.79%.
A lower repo rate is aimed at lowering other rates in the market, part of the government's ongoing attempt to lower corporate financing costs without instituting high profile measures such as a cash reserve cut or interest rate cut.
The PBOC last cut the rate on 14-day repos from 3.80% during a July 29 operation.