While there are reasons to turn tactically bullish on long dated US Treasuries ->
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Vanke, once viewed as China’s “safe” developer after Evergrande, just stunned markets. It’s asking for a 1-year delay on a ¥2B bond with zero upfront payment and even the interest pushed back a year. Creditors expected support. Instead, they got nothing. 📉 The fallout: ➡️ Bond crashed from near par to ¥27 ➡️USD notes collapsed to 20 cents ➡️Analysts warn this “shatters investor confidence” Vanke is now pledging core assets, being rejected for emergency loans, and facing warnings that its commitments are “unsustainable.” This isn’t one company’s problem — it’s the latest sign that China’s 5-year property downturn has no bottom. Home prices continue to fall, sales data is going missing, and global banks see years of decline ahead. And with China’s middle class holding most of its wealth in property, a deeper slump could be devastating. The crisis is no longer at the fringes. If Vanke is wobbling, the entire foundation is shaking. Source: zerohedge

