- The 10-year Treasury yield rose to 4.81% in Asian trading, its highest level in nearly three years, while China's comparable yield held at 1.69%.
- The widening yield differential raises pressure on Chinese assets by increasing the risk of capital outflows from China.
Quotes
“A fresh selloff in Treasuries has pushed the yield gap between US and Chinese 10-year bonds back toward an all-time high, raising the risk of capital outflow from the Asian nation.”