[China-U.S. Bond Yield Spread Widens to 317 Basis Points, Largest Since 2002] According to Bloomberg, the yield on the U.S. 10-year Treasury rose to 4.85%, the highest since 2023, while the yield on China's 10-year government bond remained at 1.68%. The China-U.S. yield spread widened to 317 basis points, the largest since 2002. Analysts suggest that the widening spread weakens the appeal of domestic assets to both domestic and international investors, exacerbating capital outflows and the risk of RMB depreciation. The report highlights that under the divergence in monetary policies—where the Federal Reserve continues its anti-inflation stance while the People's Bank of China maintains a relatively accommodative policy to support growth—the RMB's previous relative stability, supported by exports, is facing challenges. Meanwhile, global sovereign bond yields have also risen to their highest levels since 2007.