Direct foreign investment into China slumps to 30y low.
Disclaimer
This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.
Related Articles
That's the same yield level as Germany, but German government debt is 60% versus Japan's 240%. Japanese yields are still way too low given Japan's astronomically high level of government debt. Source: Robin Brooks @robin_j_brooks on X
Source: Bloomberg
As highlighted by zerohedge, Japan does NOT actually have high CORE inflation; it does however have soaring rice prices which have skewed inflation expectations across the population as rice is a huge component of the overall CPI basket. Meanwhile the BOJ is scrambling to contain inflation - which has tumbled ex food with real wages near record lows - and is tightening conditions by raising rates even though it has zero control over food inflation. However, as a by product of its monetary policies and strong yen, the bond market is crashing every day now... This bond crash could eventually spread to Japan's banks and global markets, sparking a global crisis. They thus need to do something. Yesterday, Japan's Ministry of Finance (MOF) said they will consider tweaking the composition of its bond program for the current fiscal year, which could involve cuts to its super-long bond issuance... This was enough to trigger a big drop in bond yields and the yen, which both came as a relief for global markets. What is happening on rice (and its deflationary consequences) is anotehr positive development Source: zerohedge, Bloomberg, Macrobond