US-China Sovereign Borrowing Spread Analyzer FT Intelligence Model

Macroeconomic Analysis Context: As reported by the Financial Times, sovereign yield divergence between the United States and the People's Republic of China has reached historic extremes. When US borrowing rates surge above China's monetary benchmark (PBOC MLF / 10-year CGB yields), institutional asset allocators face massive interest rate differentials. This creates persistent carry-trade incentives, putting downward pressure on the RMB and accelerating monthly capital outflow velocity towards higher-yielding dollar-denominated assets.