Justin had the news on Tuesday here:
- China is said to be planning a record budget deficit of 4% of GDP for next year.
- That will be a step up from the target of 3% of GDP for this year.
To 4% from 3% is substantial. Justin adds the caveat:
- Just be wary that all of these plans could still possibly change
- official target is typically announced in March during the National People’s Congress (NPC) session
Yep.
Adam posted his take on China overnight, with a chart of Chinese bond yield tumbling off a cliff. I did a double take on the chart Adam posted, I thought it was a Heikin Ashi with all the flat-butts, but no … just super-ugly.
Here’s a longer view … even uglier. Just for giggles I stuck a US yield chart underneath it … and you want to know why the yuan is under pressure?