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Market Impact: 0.58

China-US 10-Year Yield Gap Widens to Largest on Record

Source: Bloomberg

Interest Rates & YieldsCurrency & FXEmerging MarketsSovereign Debt & RatingsInvestor Sentiment & Positioning

The yield spread between Chinese and U.S. 10-year government bonds reached a record high after a surge in U.S. Treasury yields. The widening differential raises the risk of faster capital outflows from China and further yuan depreciation, creating pressure for Chinese financial markets and policymakers.

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