Every slice of China’s bond market has now succumbed to Japanisation (10 Jun 2026) | FT Alphaville

FT Alphaville: Back in November 2024, China’s 30-year bond yield fell below Japan’s for the first time in history. It was a big deal at the time, both encapsulating and fanning the fears that China was succumbing to “Japanisation”.

But that was just the start. A year later, China’s 10-year yield also fell victim to Japanisation, or Japanification if you prefer. That was “a historic crossover that may reignite fears the world’s No. 2 economy is sliding into the deflationary spiral that paralysed its neighbour in the 1990s” according to Bloomberg at the time.

Then, in March, two-year yields did the same. And last week, even China’s 12-month bill yield briefly moved below Japan’s (chart above)...source