Yields Show Inflation as Growth Probably Above 10%: China Credit

China’s bond market is starting to show renewed inflation concerns before a report that will probably show the economy grew 10.2 percent last year, the fastest pace since 2007.

Ten-year debt yielded 71 basis points more than two-year notes yesterday, up from 48 on Jan. 4, a steepening of the so-called yield curve that followed a record decline last month. December’s inflation cooled to a 4.6 percent pace, from a 28-month high of 5.1 percent in November, according to the median forecast in a Bloomberg News survey of 27 economists before the Jan. 20 report. The economy expanded 9.4 percent in the fourth quarter, the poll showed.