What China’s tumbling bond yields mean
The Financial Times’ Robin Harding has a nice column interpreting the seemingly relentless decline in Chinese long-term bond yields. (Bond yields fall when bond prices rise.)
Essentially, dropping bond yields mean people are leery of making riskier investments in stocks, businesses, or housing and currently prefer stuffing their money into government bonds instead.
In other words, persistently falling bond yields portend ongoing negative economic vibes.
"They amount to a vote of no confidence in government policy, a forecast that economic conditions will not improve and a warning that deflation will take root if nothing is done to stop it,” Harding writes.
In other words, persistently falling bond yields portend ongoing negative economic vibes.
"They amount to a vote of no confidence in government policy, a forecast that economic conditions will not improve and a warning that deflation will take root if nothing is done to stop it,” Harding writes.
