The Chinese yuan is getting little relief from signs of economic recovery as the bond yield gap with the US widens to the most since 2002, sapping the appeal of the nation’s assets. Gains in the onshore yuan on Wednesday following better-than-expected economic growth and retail sales data evaporated in a matter of a few hours. China’s benchmark 10-year government bond yield trades about 220 basis points below that of comparable US Treasuries, compared to the average 120 basis points premium over the past decade. The question is how wide the gap will get with traders expecting more US rate hikes, while the People’s ... (full story)