Via MarketWatch:
China’s $1.7 trillion government-bond market is exhibiting a new sign of stress: The yield on longer-term debt has fallen below that on shorter-term debt—an anomaly that some traders are blaming on Beijing’s efforts to reduce financial risk.
Early on Thursday, the five-year yield AMBMKRM-05Y, -0.79% rose to 3.71%, breaking above the 10-year yield AMBMKRM-10Y, -0.96% for the first time since records began—even though the latter, at 3.68%, was near a 25-month high. Bond yields rise as their prices fall.
