Increased pace of Chinese manufacturing expansion may lead to higher rates

The latest Chinese PMI data came in a little higher than was expected at 55.1. Any reading above 50 indicates an expansion in the manufacturing sector. It will be interesting to see how much of this expansion is to cater to international demand and how much is due to increased demand in the domestic economy. Once again this data will see increased speculation about the level of Chinese interest rates and the value of the Yuan.