Chinese yields are putting on an extraordinary display. Interbank markets remain tight for SHIBOR and repo:
But what’s really going nuts is bond yields:
You will have noted, I’m sure, that such bond bear markets have preceded all three major Chinese slowdowns in 2009, 2012 and 2015. The further this runs the more likely it is that we’re entering a serious correction not just blowing a bit of froth off the top.
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