The US and Chinese economies have never been more different:
China’s 10-year government bond has returned +20.9% since the beginning of 2022.
By comparison, the US 10-year Treasury note has declined -13.4%.
This comes as China’s 10-year bond yield has plummeted -122 basis points while the US 10-year note yield has risen +300 basis points.
China’s economic slowdown and ~2 years of deflation have been behind the slump in yields.
Conversely, economic resilience and elevated inflation have driven the rise in the US yields.
The world's largest economies are heading in opposite directions.
