Flatter US Bond Yield Curve Not Yet Flagging Recession Risk – Bank Of Singapore

Editorial Staff

15 February 2022

The US government bond market yield curve is starting to flatten – sometimes taken as a red flag about impending recessions – but investors shouldn’t brace themselves for a downturn just yet, rate cuts, Chinese policy makers are also easing financial conditions via a number of administrative changes. Regulators have announced that they plan to expand the `registration-based’ IPO system used in China’s smaller venture board to the main board this year. This is expected to give more freedom to issuers and promote much-needed equity financing for companies in China, freeing up resources for the credit crunch in the corporate sector,” the bank continued.

BoS said that it expects a reversal of some restrictive policies on the key real estate sector, as authorities seek to prevent episodes such as the default of Evergrande and other developers becoming more serious.

“Last week, the People’s Bank of China and China Banking and Insurance Regulatory Commission announced that affordable rental housing loans will be excluded from banks’ real estate loan concentration management limits,” BoS said.