China's one year swap rate recorded its biggest weekly increase in two months, on expectations saying the People's Bank of China will work on tightening its monetary policy. China's Prime Minister said this week the government will deal with the credit boom to avoid a new bubble formation.

However, credit growth accelerated to 9.59 trillion yuan ($1.4 trillion) of new loans, while the central bank raised rates on the 3 months bills yesterday, after asking some banks to limit lending.