-
Diverging rates outlook has China's yuan eying 2022 lows
Bond markets are putting Chinese and global rates on opposite paths, speculating on cuts in China against hikes in the U.S. and prompting banks and Chinese companies to prepare for a weaker currency as Beijing rolls out more stimulus. The yuan fell past the closely-watched seven-per-dollar level last month and hasn't stopped, as China's post-pandemic economic recovery falters amid weak demand at home and abroad. This week it hit a six-month low on the dollar after surprise cuts to key China rates, putting the gap between 10-year sovereign yields in China and the U.S. at its widest since November. The gap with British ... (full story)