[[{“value”:”China’s long-term bond yields have fallen below Japan’s for the first time, as investors bet that the world’s second-biggest economy will become bogged down by the deflation that has long afflicted its neighbour. A rally in 30-year Chinese government bonds has pushed their yield down from 4 per cent in late 2020 to 2.21 per
The post China (Japan) fact of the day appeared first on Marginal REVOLUTION.”}]]
China’s long-term bond yields have fallen below Japan’s for the first time, as investors bet that the world’s second-biggest economy will become bogged down by the deflation that has long afflicted its neighbour.
A rally in 30-year Chinese government bonds has pushed their yield down from 4 per cent in late 2020 to 2.21 per cent on Friday, as Beijing cuts interest rates to boost its flagging economy and Chinese investors pile into haven assets.
Japan’s long-term bond yields, which for years were stuck below 1 per cent, have risen above China’s to 2.27 per cent, as Tokyo normalises monetary policy after decades of deflation.
Here is more from the FT.
The post China (Japan) fact of the day appeared first on Marginal REVOLUTION.
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