SHANGHAI, Aug 26 (Reuters) - Yuan borrowing costs rose in Hong Kong on Monday morning, with the CNH Hong Kong Interbank Offered Rate benchmark (CNH HIBOR) rising across tenors.
The overnight contract rose to 4.07150%, the highest since Oct. 9, 2018, 58 basis points above the previous fix of 3.48975% on Friday.
And the one-week tenor also jumped to its highest since November.
Rises in the CNH HIBOR suggested tightness in yuan liquidity offshore, and that could mean shorting the Chinese currency has become more expensive.
The HIBOR rate is set by the city’s Treasury Markets Association (TMA). (Reporting by Noah Sin and Winni Zhou; Donny Kwok in HONG KONG; Editing by Jacqueline Wong)