MONEY MARKETS-Dollar funding rates dip, Korea swaps rise further

HONG KONG Nov 20 (Reuters) - Dollar funding rates fell to record lows as policymakers played down the threat of capital controls, easing fears of outflows while lower interbank rates in overnight New York and London trade also helped.

* In Singapore, 3-month dollars SIUSDD=ABSG quoted at an average 0.27186 percent, a new low.

* South Korean cross-currency swaps in shorter tenors climbed further a day after the regulator announced various measures, including restricting trade in foreign exchange forwards with exporters and specifications on liquidity ratios. [ID:nSEO196381]

* Dollar/won one-year cross currency swap KRWCRS=KMBC rose to 1.18 percent from Thursday's 1.1 percent. It has risen from 0.85 percent earlier this week.

* Kim Jong-chang, governor of South Korea's regulatory Financial Supervisory Service, said foreign currency liquidity measures unveiled on Thursday may push local banks' costs higher, but any increase will be "marginal".

* The basis spread between the interest rate swaps and cross currency swap has declined to 60 basis points in the 5-year segment, a level not seen since January this year.

* This is being driven by a flattening IRS curve with the 1-year, 5-year gap down to 92 basis points from over 1 percent at the start of the month.

* Australian swaps fall and futures rise as expectations of a rate rise in December are pared back.

* The market is now seeing a 62 percent chance the central bank will tighten by 25 basis points CSRBA=CSAU next month, down from Thursday's 66 percent and much below last wee's high of 83 percent.

* One year overnight indexed swaps AUD1YOIS= are down 3 basis points to 4.33 percent.

* December bill futures <0#YBA:> added 0.03 points to 95.93, and three-year bond futures YTTc1 rose 0.05 points to 95.13. (Reporting by Umesh Desai; Editing by Tomasz Janowski)