Opinion: Will Trade War Push Yuan to ‘Break 7’?

The resurgence of trade friction between China and the U.S. was undoubtedly the most influential factor in the markets in May. Looking at the performance of various asset classes last month, both Chinese A-shares and U.S. stocks were hit by risk-off sentiment, and the yield on 10-year U.S. Treasurys fell by 20 basis points while that on 10-year Chinese government bonds slid by just under 10 basis points.