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Stock impact report

China's Key Bond Yield Set to Drop Below Japan's for First Time [Yahoo! Finance]

Sumitomo Mitsui Financial Group Inc Unsponsored American Depositary Shares (Japan) (SMFG) 
US:NYSE Investor Relations: smfg.co.jp/english/investor
Company Research Source: Yahoo! Finance
is sliding into the deflationary spiral that paralyzed its neighbor in the 1990s. The yield on China's 10-year bond is hovering near the lowest in more than two months as underwhelming economic data and losses in the stock market prompt investors to seek the safety of sovereign debt. On the other hand, Japanese yields of a similar tenor have surged to the highest since 2008 on concern that the government's spending plans will fuel inflation and add to the country's already-heavy debt burden. Most Read from Bloomberg What It Takes to Defeat the Leaf Blowers Baltimore's Rebooted Transit Project Can't Come Soon Enough Chicago's ‘Job Killer' Corporate Tax Plan Rejected by Committee Emergency Alerts Company Sued Over 18 Deaths in LA Fire These opposing yield trends signal a stark reversal of economic fortunes: investors are now pricing in a structural shift where China inherits Japan's former mantle of chronic stagnation, while Tokyo finally shakes off decades of deflation. T Show less Read more
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