ICYMI – China promised massive stimulus yesterday (will it work this time?)

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?

This article was written by Eamonn Sheridan at www.forexlive.com.