The Smoke Thickens In China

Other global curves, however, are in varying stages further along. Most importantly, China’s federal bond curve inverted at several times last year. And since the RRR cuts particularly the latest this year, money rates have recently plunged. The net result, since short-term government bonds are treated as close money substitutes, is a Chinese yield curve that last year inverted and now clearly displays the bear steepener case.