1/4
Chinese bank-deposit yield curves seem to be inverting. This may matter to growth expectations, the author suggests, because "an inverted yield curve is a closely watched signal of recession risk in Treasury markets."
ft.com
Chinese bank-deposit yield curves seem to be inverting. This may matter to growth expectations, the author suggests, because "an inverted yield curve is a closely watched signal of recession risk in Treasury markets."
ft.com
2/4
Yes, but we have to be careful about interpreting Chinese monetary conditions as if they were American. Interest rates signal different things in the US financial markets than they do in the very-different Chinese financial markets.
Yes, but we have to be careful about interpreting Chinese monetary conditions as if they were American. Interest rates signal different things in the US financial markets than they do in the very-different Chinese financial markets.
3/4
In China credit allocation is largely set administratively, through a ind of "window guidance", and changes in interest rates mainly determine changes in the distribution of income between different kinds of lenders and borrowers.
In China credit allocation is largely set administratively, through a ind of "window guidance", and changes in interest rates mainly determine changes in the distribution of income between different kinds of lenders and borrowers.
4/4
I don't know what the yield inversion on deposits means for China, but to the extent that it is mostly happening in the largest banks, it may simply be the consequence of Chinese depositors feeling from risk, as the article notes.
I don't know what the yield inversion on deposits means for China, but to the extent that it is mostly happening in the largest banks, it may simply be the consequence of Chinese depositors feeling from risk, as the article notes.
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