China's bond market is screaming the “D” phrase. “D” as in despair.

A Wall Avenue Journal opinion piece. Which appears to be well-founded.

• China’s Bond Yields Scream the ‘D’ Word
  

The Journal is gated, however in very transient from the article:

• China’s bond market displays deep financial stress, with 10-year sovereign yields falling to 1.7% and 30-year yields beneath 2%.
• companies are struggling, unemployment is extreme, and native governments are overwhelmed by debt
• Efforts by Beijing to spice up progress, together with incremental stimulus measures and infrastructure investments, have failed to revive confidence, with bond markets signaling skepticism.
• State-owned establishments are prioritizing bond purchases over investing within the broader economic system, underscoring weak demand and restricted coverage effectiveness.

I posted a yield chart earlier, right here it’s once more (China on prime, US beneath):

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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