Idea on Macro:
- China's Credit Impulse has turned negative.
- Credit impulse is the change in new credit issued as a % of GDP.
- China's Government Bonds 10 YR Yield are correlated with China's Credit Cycle.
- The Credit Cycle taking a downturn signals deflation. Bond prices will rise as borrowers (issuers) will expect to pay back the principal at a loss, and...
📌 A Pullback for Chinese Yields
This illustrates the notion of development in a change in trend for China's sovereign bond market . Sellers avoided a breakout and are aiming to test 3.00%.
On the fundamental side , China is outperforming as expectations are skewed towards favouring their management of the virus and recognisable weakness of the West!...
