We already know that China yields have been plummeting with the 10-year yield hitting 1.59% this week (2.47% during Covid) , the 2-year yield hitting 1.025% (1.307% during Covid) leaving the 2's 10's curve at just 60 bp's (121 bp's when yields fell during Covid)
Chinese equity markets are also again under pressure despite new lows in yield .
As we finish the first week of January the next "Shoe to drop" looks to be the currency and USDCNH looks like it might be on the cusp of an explosion higher possibly as early as next week.
