What does an inverse yield curve for china government bond mean?

Typically, an inverted yield suggests a good probability of recession. One of the main drivers for the yield curve inversion is the tightening of monetary conditions by People's Bank of China _(POBC). _This has caused banks to curb corporate and mortgage lending while passing through higher lending rates to borrowers. In other words, an inverted yield curve puts the POBC in a difficult position as their short-term funding needs become more expensive than their longer-term assets.