SINGAPORE, Aug 24 (Reuters) - Interest rate swaps and other short-term yields rise in Asia on the back of a sell-off in U.S. Treasuries overnight and a jump in stock markets after U.S. upbeat housing data and encouraging comments from Fed Chairman Ben Bernanke.
* Short-term yields meanwhile fall, mimicking LIBOR, helped by the abundance of cash in banking systems globally that has yet to be deployed in loans or longer term assets.
* South Korean markets, the most hawkish in Asia, drive up interest rate swaps, with the one-year tenor at 3.41 percent or 6 basis points higher than on Friday. That comes on the heels of a 10 bps rise in benchmark 3-month certificate of deposit rates this month.
* Analysts say while most Asian markets are moving in step with dollar markets, the upward bias in some front-end curves such as in India and Korea will persist owing to fears central banks in these economies will withdraw cash much earlier.
* In India, the one-year swap starting after 12 months is quoted at 4.55 percent, 115 bps above the one-year swap rate at 3.4 percent.
* At the short end, 3-month dollar rates in Singapore fall 2 basis points from Friday to 0.40286 percent, a third of the levels in March.
* The spread between LIBOR and overnight-indexed swaps (OIS), the latter a measure of market expectation of policy rates, narrows to 21 basis points, a level of tightness last seen two years ago.
* In the main dollar funding centres in Singapore and Hong Kong, interbank rates extend their slow and steady grind lower, mimicking LIBOR.
* Singapore interbank 3-month rates are at 0.56 percent and have dropped 7 bps in the past month.
* Three-month rates in Hong Kong dollars are at 0.22 percent, a 14 bps drop in the past two months.
* In Thailand, where the interbank rates are a function of dollar LIBOR and the baht forwards, 3-month rates have fallen 10 bps in the past month and are at 1.01 percent.
(Reporting by Vidya Ranganathan)