Part 2/8:
The dramatic decline in yields indicates increased purchasing of bonds—predominantly by the People's Bank of China (PBOC), the nation’s central bank. As it engages in extensive money printing to buy government bonds, yields drop. This dynamic is decidedly not a sign of a healthy financial market; rather, it highlights the distortions in a centrally planned economy, where financial maneuvers lack the free market dynamics typically observed in capitalist systems.