The generally pessimistic and optimistic consensus outlooks for China and Japan, respectively, are obviously not without risk. — Reuters
CHINA, the global growth engine for the last 20 years, now boasts lower long-term bond yields than Japan, the former poster child for deflationary economic stagnation. This may signal that the “factory to the world” faces the real risk of “Japanification.”
China’s bond yields have plunged to their lowest levels on record, with the two-year yield about to break below 1.00%, having been 1.50% only a few months ago.
