# Inverted swaps curve shows investors pare China rate cut bets

> Investors pared bets on further Chinese interest rate cuts as concerns over yuan stability grew. Widening China-US bond yield gaps and US tariff uncertainty have weakened the yuan against the dollar. The article says this limits the central bank's room to ease monetary policy.

- Date: 2025-01-14 · published 2025-01-14T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/12211-inverted-swaps-curve-shows-investors-pare-china-rate-cut-bets
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Limited Chinese monetary easing reduces the chance of stimulus-driven feed demand recovery, while yuan weakness raises import costs for Chinese buyers.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2021-06-15 | [China approves highest-ever outflows for mainland investors](https://feedsoft.ai/events/7117-china-approves-highest-ever-outflows-for-mainland-investors.md) | +1.1% | +1.1% |
| USDCNY | 2018-08-30 | [Macroscope \| China’s yuan sinks, but neither its central bank nor investors are showing signs of panic \| South China Morning Post](https://feedsoft.ai/events/63747-macroscope-china-s-yuan-sinks-but-neither-its-central-bank-nor-investors-are.md) | +0.2% | +1.0% |
| USDCNY | 2021-07-28 | [International investor concerns mount over China's tech rout](https://feedsoft.ai/events/46286-international-investor-concerns-mount-over-china-s-tech-rout.md) | -0.6% | -0.6% |
| USDCNY | 2021-07-27 | [China Stock Rout Spreads Amid Fears of Foreign Investor Exodus - Bloomberg](https://feedsoft.ai/events/46290-china-stock-rout-spreads-amid-fears-of-foreign-investor-exodus-bloomberg.md) | -0.3% | -0.0% |
| USDCNY | 2024-07-22 | [China cuts several major interest rates to support fragile economy](https://feedsoft.ai/events/7516-china-cuts-several-major-interest-rates-to-support-fragile-economy.md) | -0.3% | -1.4% |

## Sources

- reuters.com: https://www.reuters.com/markets/asia/inverted-swaps-curve-shows-investors-pare-china-rate-cut-bets-2025-01-14/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.