Trump's 5% Treasury Yield Problem: What BofA's US-China Stock-Bond Chart Really Shows

China's near-record-low 10-year yield came with two decades of equity underperformance and capital controls that Chinese savers are already working around by buying US tech.

By Dorian

I. Start from reading the BOFA’S CHART

The vertical line in Hartnett’s chart is being lifted by a Treasury selloff as much as by equities, and the low Chinese yields Trump envies are held in place by capital controls that Chinese savers are already queuing to get around.