“China’s long-term bond yields fell below Japan’s for the first time, as investors see the world’s second-largest economy as mired in the deflation that has long plagued its neighbor.”, — write: epravda.com.ua
China’s long-term bond yields fell below Japan’s for the first time, as investors see the world’s second-largest economy as mired in the deflation that has long plagued its neighbor. The Financial Times writes about it. A rally in China’s 30-year government bonds has pushed their yield down from 4% at the end of 2020 to 2.21%, as Beijing cuts interest rates to stimulate its faltering economy and Chinese investors pour into safe-haven assets. Japan’s long-term bond yield, which has hovered below 1% for years, rose above China’s to 2.27% as Tokyo normalizes monetary policy after decades of deflation.Advertisement: The rise in yields comes as Chinese authorities try to prop up yields, warning that a sudden reversal in the market could threaten financial stability as a whole.Advertisement: Some investors believe that certain conditions in China’s economy resemble the situation in Japan in the 1990s, when the bursting of a housing bubble led to decades of stagnation.
