How else can you explain the incompetent reaction of the Middle Kingdom's monetary authorities?
I just wish there was a way to bet on this one.
* * * * * J B K * * * * *
San Francisco
China's policy makers may start easing monetary policy in the coming months as bond yields signal that the economy is heading for a "hard landing," BNP Paribas said.
The curve tracking the difference between the yields on 2- and 5-year bonds has "collapsed" in the past 10 days and an inversion may signal a recession in China, BNP strategists Clive McDonnell and Ryan Tsai said in a report today. That outcome would be "unthinkable" for China, they said.
"While the yield curve is telling us that the economy is heading for a hard landing, we believe there is no appetite among policy makers for such an outcome," the strategists wrote.
http://www.bloomberg.com/apps/news?pid=20601068&sid=a7DUAI.vbwAo
