SHANGHAI, Dec 19 (Reuters) - Yields on negotiable certificates of deposit (NCDs) hit record highs on Monday, reflecting banks’ strong demand for cash near the end of the year.
The yield on three-month AAA-rated NCDs, the most commonly issued type of NCD, reached 5.1 percent on Monday, exceeding a previous high of 5.09 percent hit in April 2015.
The yield on three-month AA+-rated NCDs AA+NCD3MS=CFXS was at 5.3019 percent.
NCDs have been an increasingly popular source of funding among smaller banks, but have come under the regulatory spotlight amid a campaign to reduce financial risk.
Reporting by Andrew Galbraith; Editing by Eric Meijer