Bonds
China Bonds Flash ‘Japanification’ Warning Despite Stimulus Plan
- Thirty-year yields look poised to drop below Japanese peers
- China’s economic woes fan fear of balance-sheet recession
This article is for subscribers only.
Promoters of the theory that China faces a “Japanification” of its economy look set to enjoy a symbolic milestone in the bond market.
The yield on China’s 30-year government bonds is on track to fall below its Japanese equivalent for the first time in about two decades. China’s long-term yields continue to plumb fresh lows amid a sluggish outlook for the world’s second-largest economy, while Japan’s have climbed to their highest in 13 years on bets the fourth-biggest has finally banished the scourge of deflation.