A Wall Street Journal opinion piece. Which seems to be well-founded.
The Journal is gated, but in very brief from the article:
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.
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 debt
- Efforts 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.