MONEY MARKETS-Aussie swaps creep higher, set for rate rise

SINGAPORE, Nov 2 (Reuters) - Australian overnight-indexed swaps inch higher and interbank futures dip after the government's upgrading of its fiscal and economic forecasts strengthen expectations for a rate rise on Tuesday.

* Aussie one-month OIS AUDOIS rises to 3.53 percent, 6 bps higher than levels at the end of last week.

* A Credit Suisse gauge of rate expectations CSRBA=CSAU also rises to show a 118 percent chance the Reserve Bank of Australia will raise rates this week, implying a definite chance the policy rate will go to 3.5 percent from 3.25, and even a small risk of a half percentage point rate rise.

* Aussie bill futures rise as safe haven flows pick up alongside weaker stock markets and doubts about the strength of the global economic recovery. But interbank futures <0#YBA:> fall, with implied yields rising 2-3 bps across the curve.

* In dollar funding markets, costs in shorter tenors climb from record lows heading into a Federal Reserve policy meeting this week. Markets unanimously expect the near-zero rates and loose policy to be kept intact but some anticipate a tweak to the Fed's dovish language.

* In Singapore, 3-month dollars SIUSDD=ABSG are quoted at an average 0.2871 percent, a blip higher than last week's record low of 0.2843 percent.

* 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 14 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.

* Data on exports, manufacturing and inflation out of Korea meanwhile hinted the economy's pace of recovery was moderating and sowed more doubts in a market that has been re-assessing the likelihood and speed of future policy tightening.

* At its lows, Korean one-year swap KRWIRS was 3.52 percent, 11 bps lower than Friday's highs.

* Singapore interbank 3-month rates SGDDFIX=ABSG are at 0.57 percent, extending a slow grind higher since last week. (Reporting by Vidya Ranganathan; Editing by Tomasz Janowski)