China’s Bonds Are Near Pressure Points as Liquidity Tightens
- Economic and market indicators point to higher rates in China
- Net foreign inflows to the debt market have taken a breather
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A much-anticipated selloff in China’s bond market, the world’s second largest, may not have materialized yet, but it is on its way if key indicators are any guide.
Producer prices are surging, activity gauges are on the rise and foreign bond buying has ground to a halt. What’s more, swap markets signal tighter liquidity.