Name: Market Snubs Power: China's 50-Year Bonds Fall Flat Despite Hype || Digging into China | Videos | Gan Jing World - Technology for Humanity | Video & Movie Streaming
Uploaded: 2025-05-29T00:13:08.972Z
Duration: 13 min 25 s
Description: Market Snubs Power: China's 50-Year Bonds Fall Flat Despite Hype In May, the U.S. Treasury’s 20-yea... | Videos | Gan Jing World - Technology for Humanity | Video & Movie Streaming

Digging into China

https://video1-us-east.cloudokyo.cloud/video/v12/53/ec/47/53ec47d1-1932-4801-9787-42f79860adca/master.m3u8

Market Snubs Power: China's 50-Year Bonds Fall Flat Despite Hype

In May, the U.S. Treasury’s 20-year bond auction yielded 5.047%, slightly above expectations, reflecting lukewarm demand for a niche product. Meanwhile, China’s Ministry of Finance issued 50-year special treasury bonds at a 2.1% yield, exceeding market forecasts by 7.5 basis points, signaling weak market confidence despite heavy promotion. The low bid-to-cover ratio of 2.27 highlighted reluctance from state-owned financial institutions, despite ample liquidity from recent central bank actions. This auction’s fallout raised long-term bond yields, exposing deeper economic issues: growing fiscal reliance on long-term borrowing, ineffective monetary policies, and cautious financial institutions prioritizing self-preservation over policy compliance. While the U.S. auction was a minor stumble, China’s was a significant misstep, revealing a disconnect between policy ambitions and market trust, challenging the government’s ability to sustain economic stability through debt issuance.

0:00 Intro
1:08 A Global Bond Market Showdown
1:56 America’s Quiet Stumble
2:38 China’s High-Stakes Flop
5:13 Liquidity Without Confidence
5:42 Defiance in the Ranks
6:55 Betting on a Shaky Future
7:47 Monetary Policy’s Fading Power
9:09 Financial Institutions Push Back
10:56 Contrasting Commitments
12:10 A System Exposed

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