174 days ago • Posted by Charles-Henry Monchau

Chinese 10-year Yield premium over US Treasuries hits record high

With US Treasury yields capped around 0.90% amid concerns that in the absence of fiscal stimulus the Fed will need to step in with more easing, China is facing a different set of challenges and following the recent rout in the bond market following several unprecedented State Owned Enterprises (SOE) defaults, overnight the Chinese 10Y yield rose another 2bps to 3.36%, and almost 90bps from the all time low of 2.48% hit in April. As a result, the premium for China’s 10-year government bonds over U.S. Treasuries of same duration has climbed to 250 basis points, the highest on record.  Source: www.zerohedge.com  

U.S 10 year yield over China 10 year yield