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Russell Clark's avatar

Agreed - that why it freaked me out a bit... I can see why JGBs have rallied, so might not need to worry too much. To be fair gilts have rallied far more than I would have thought too

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Clement's avatar

My gut feel tells me that USDCNH is the one to watch out for to confirm/refute your thesis

If it appreciates (Yuan depreciates) past 7.40 then you can say the CCP has decided to devalue - and the reflation thesis would be toast.

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Russell Clark's avatar

Yes. Just as the US devaluing the dollar in 1972 was the begininning of.the end of the inflationary era

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