MONEY MARKETS-Aussie swaps extend rise, China bill yields drop

SINGAPORE, Nov 6 (Reuters) - Australian overnight-indexed swaps inch higher after a bullish central bank report on prospects for growth and investment in the economy.

* Aussie 3-month OIS AUDOIS rises to 3.64 percent, a rise of 5 bps this week.

* A Credit Suisse gauge of rate expectations CSRBA=CSAU also rises to show a 64 percent percent chance of a 25 bps rate rise by the Reserve Bank of Australia in December, following the two such quarter point rate rises in the past two months.

* Aussie interbnak futures also fall <0#YIB:>, with implied yields rising 2 bps across the curve. The 30-day implied yield is at 3.66 percent on the January 2010 contract.

* In China, a strong market interest in 91-day bills sold by the finance ministry at a yield of 1.2262 percent spurs a broader rally in rates.

* Yet, the 7-day China repo rate CN7DRP=CFXS edges up very slightly to 1.4436 percent as banks prepare for a outflows towards an initial public equity offer by China Merchants Securities.

* In local dollar funding markets, costs in shorter tenors climb from lows, although Eurodollar futures and other spreads are still basking in the dovishnesses triggered by the Fed's meeting this week and the promise of ample cheap money for a long time.

* The European Central Bank and the Bank of England meanwhile tweaked policies on Thursday, with the former signalling an end to its one-year loans to banks by next year and the latter expanding its asset purchase program by 25 billion pounds.

* In Singapore, 3-month dollars SIUSDD=ABSG are quoted at an average 0.287 percent, a blip higher than a record low of 0.2843 percent it revisited on Thursday.

* The spread between LIBOR LIBOR= and overnight-indexed swaps (OIS), the latter a measure of market expectation of policy rates, has also barely changed in months, and is quoted at 13 bps.

* In local markets, the Korean benchmark certificate of deposit rate KRCD=KQ is at 2.79 percent and has not changed since mid-October.

* Singapore interbank 3-month swap-offered rates SGDDFIX=ABSG are at 0.5758 percent, extending a slow grind higher since last week. (Reporting by Vidya Ranganathan; Editing by Kazunori Takada)