China 30 year continues to drift lower, yield 1.854%.
Deflation and the lost decade are real possibilities.
With over capacity in manufacturing it’s only a matter of time before deflation reached the west. pic.twitter.com/GUzESzA0QB
— James E. Thorne (@DrJStrategy) January 8, 2025
🚨DEFLATIONARY IS COMING TO CHINA🚨
China's economy has seen deflation for 6 STRAIGHT quarters, the longest streak since 1999.
World's 2nd-largest economy issues have driven government bond yields straight down.
China's 30-year fell below Japan's for the 1st time in history. pic.twitter.com/1D1qPtNuMH
— Global Markets Investor (@GlobalMktObserv) January 8, 2025
No one trusts the Chinese stock market right now, and homes are no longer "guaranteed investments" thus they are parking their money in Chinese bonds. So, bond prices up/yields down (it's also hard to get money out of China, as you are likely aware). https://t.co/3Ald25Ln7r
— Gordon Johnson (@GordonJohnson19) January 8, 2025
China intentionally popped its housing bubble to make homes affordable for average people to live in, not speculative assets.
China restricted lending to real estate and increased loans for high-tech industry.
The US did the opposite after 2008: it reflated its housing bubble! https://t.co/A7In5FAb60 pic.twitter.com/8bZXgeAx7t
— Ben Norton (@BenjaminNorton) January 8, 2025