Friday, January 7, 2011

Inverted Chinese yield curve

Did a bit of sleuthing after reading an article on Bloomberg about Chinese corporate bond yields and it seems that the inverted yield curve shows up in the Chinese government bond market as well. Given the well documented relationship between inverted yield curves and their predictive powers to forecast recessions, does this mean that a Chinese recession is looming??



Tip - use this link here to find the symbology on Bloomberg (you can get all the same tickers as used in the professional service ie upwards of $10,000 a year Bloomberg terminals). You will need to do a bit of homework to get the ticker to work though ie Indexes have the :IND after the ticker for example:

 CHBIGB1Y:IND is the symbol for the 1 year bond


Chart is courtesy of Bloomberg.

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