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Are money market rate spikes warning signs?

With largely positive factors in markets, there's no cause for panic at this juncture.

Alibaba Group Holding Ltd's listing ceremony was held at the Hong Kong Stock Exchange in HK, China, on Tuesday. It raised about US$11 billion in a long- awaited HK stock sale.

ONE question we often hear today is whether the recent surges in money market rates in the US and Hong Kong - that is, the US repo rate (repurchase agreement rate) and the HIBOR (Hong Kong Interbank Overnight Offered Rate) - serve as warning signs of a major market dislocation ahead.


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