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So, I will soon have an opportunity to buy the dip?
more are rushing to the safety of near-term fixed income
Are you sure you have this the right way round? I would have thought that a rush into near term would push down yields at the short end rather than raise them.
Sorry, forgot the quotation marks around it...
Interesting article. This is a 10s30s-type issue in Chinese context, right?
Even for gov securities, fixed income in China is typically bought and held to maturity. There is no liquid secondary market. (Maybe that is changing?) Between those mechanics and limited supply any selling will result in big moves.
So at least we know why they said they (the Chinese) would nuke first and ask questions later the other day......
Seems that a Chinese slowdown will continue to shorten the supplies of many AG products (wheat right?), PMs, and REMs.
Hmmmm....makes one ponder doesn't it?
Rushing for 4.67% at the long end of the curve in order to lock in a good rate while they can
rather than settle for 4.97% short term i.e., the Chinese bond market is predicting an economic
slowdown. Remember the last time the interest rate curve in the US was inverted??? 2006-2007.
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