, Columnist
An (Almost) Inverted Yield Curve Is Worrying China
It’s getting flatter, prompting worries over an ‘asset famine’ and a prolonged recession.
An asset famine is driving risk-taking among China’s investors.
Photographer: Raul Ariano/BloombergThis article is for subscribers only.
A curious thing is happening in China’s 29 trillion yuan ($4 trillion) government bond market.
The yield differential between 30- and 10-year bonds has narrowed to as little as 11 basis points, sparking discussions over whether some parts of the sovereign curve will invert too, like it did in the US.