China bond market diverges from US as Warsh strikes hawkish tone at Jackson Hole

The divergence of the bond markets in China and the US risks widening further, as economic data remained underwhelming at the Asian nation, while Federal Reserve chairman Kevin Warsh’s hawkish tone and concerns about fiscal sustainability add to the headwinds for Treasuries. The yield on China’s 10-year government bond traded at 1.692 per cent on Monday, approaching the lowest in a year after the key set of economic figures trailed analysts’ estimates in July. Brokerages including Great Wall...