Comment on China’s bond market could be signaling a further economic slowdown

China’s bond market could be signaling a further economic slowdown

GOH CHAI HIN / AFP / Getty ImagesIn the bond market, an inverted yield curve has often predicted recession in developed economies. So what does the recent inversion of the yield curve in China say about the country’s economic outlook? Since 2005, the yield on the 10-year Chinese government bond (CGB) has exceeded the one-year CGB yield by an average of 100 basis points (bps).

 

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