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The bond yield gap between China and the US has widened to its largest since 2002, with China's 10-year yield about 220 basis points below US Treasuries. Gains in the yuan after better-than-expected growth and retail sales data quickly faded.
A wide yield gap encourages capital outflows and keeps pressure on the yuan, raising the dollar cost of Chinese imports. Weak currency conditions can also weigh on Chinese buying of feed commodities.
bloomberg.comBloomberg NewsOct 19, 2023After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
