Complete bloodbath in China’s 30-year government bond yield.
US 30-year government bonds now yield 310 basis points MORE than China’s.
China needs more than just stimulus.
Ouch 😳
Discussion
Obviously, the answer is MORE Patriotic Socialism with Chinese Characteristics.
Help me here please. I thought if yields are falling that means demand is there to purchase at lower yields. Unless they are being bought by the government. Do I have this backwards?
When government bond yields tank, it’s a signal:
🚨 Recession fears or slowing growth
📉 Inflation expectations dropping
💰 Cheaper loans but weaker savings returns
📊 Stock market rotation: Growth > Value
🛡️ Flight to safety
Ripple effects across the economy. Stay alert. #Markets