Cleaving Atoms
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FEED
2022-05-18
Chinese Yields Slide Again
There is some optimism around China reopening, but I'm not buying it yet. The Chinese 10-year yield went negative again relative to the U.S. 10-year. This puts pressure on the yuan because it diverts idle dollars away from China (such as exporter earnings), and longer-term the Chinese and emerging markets funds are correlated with the direction of this rate spread.
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