China’s Record Yield Curve Inversion “Spells Disaster”

Overnight we noted that the Chinese stock and bond markets ‘turmoiled’ as The National Congress came to an end and the forced repression of any weakness ended. Perhaps the most critical aspect of the moves was the push to new record levels of inversion in the Chinese sovereign bond curve.
The Chinese yield curve has now been inverted for 10 straight days – the longest period of inversion ever…
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As Bloomberg reports, Qin Han, chief fixed-income analyst at Guotai Junan Securities Co., doesn’t mince his words when it comes to the rout in Chinese bonds.
“Considering the pace of the slump, which is very fast, it’s fair to say we are likely in a bond disaster…”

This post was published at Zero Hedge on Oct 30, 2017.