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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 changeofficial 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.

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