Chinese yield rocket finally flaming out?

Tuesday 16 May 2017

Chinese interbank spreads have calmed a little since Chinese authorities eased off:

Bond kept selling yesterday but there’s finally a little big today:

Bloomberg reports that it have been turning irrational:

“No one knows what kind of indicator would suggest the campaign is over, and no one knows how long this process will last,” said Shan Kun, head of China markets strategy at BNP Paribas (China) Ltd. in Shanghai. “When the market is so pessimistic, investors are trading based on expectations, and declines can be illogical.”

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.