Guotai Junan: Chinese bonds are "bear steep", U.S. bonds are "bull flat", with a high probability of interest rate cuts in September.

According to Mars Finance, Jin10 reports that a research report from Guotai Junan Securities points out that the China bond market exhibits a “bear steepening” characteristic, with the yield curve shifting upward overall, the 10Y-2Y yield spread widening, and AAA-rated credit bond yields generally rising. In contrast, U.S. Treasuries display a “bull flattening” characteristic, with the yield curve shifting downward overall and the 10Y-1Y yield spread narrowing. Powell stated at the Jackson Hole Economic Symposium on August 22 that the balance of economic risks has changed, borrowing costs are dragging down the economy, inflation risks are controllable, and signals of a high probability rate cut in September have been released.