China's Bond Market Is Changing Its Tune on Japanification
Just a few months after China's bond market was plagued by fears of Japanification, soaring yields are pointing to a stark shift in sentiment.
Benchmark yields hit a three-month high this week as traders unwound bets that the world's second-largest economy is about to enter a Japan-style period of deflation and cheap money. China's 10-year yield jumped above 1.9%, cementing a five-week widening that has erased around a third of its move lower since the start of 2024.
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