A Wall Street Journal opinion piece. Which seems to be well-founded.
China’s Bond Yields Scream the ‘D’ Word
The Journal is gated, but in very brief from the article:
China’s bond market reflects deep economic stress, with 10-year sovereign yields falling to 1.7% and 30-year yields below 2%. businesses are struggling, unemployment is severe, and local governments are overwhelmed by debtEfforts by Beijing to boost growth, including incremental stimulus measures and infrastructure investments, have failed to restore confidence, with bond markets signaling skepticism. State-owned institutions are prioritizing bond purchases over investing in the broader economy, underscoring weak demand and limited policy effectiveness.
I posted a yield chart earlier, here it is again (China on top, US below):
This article was written by Eamonn Sheridan at www.forexlive.com.
