U.S. Inflation Under Control In The Medium And Long Term Despite Short-term Upside The 10-year U.S. Treasury yield has been lingering recently, and the market expects inflation to continue to rise.

Economic and Financial Markets Outlook (Q2, 2021) Global economic momentum has improved since the beginning of 2021, as COVID 19 vaccines helped reopen economies.

Operation Twist a Viable Option as the Fed is Stuck between a Rock and a Hard Place Surging U.S. long yields have been dominating market headlines recently. In the latest monetary policy meeting, the Fed did not announce any measures to contain rising yields.

Macro Policies Normalize While Industrial Policies Focus On Reform China delivered its government work report in early March setting GDP growth target for 2021 at above 6 percent, planning to create more than 11 million new jobs while control ling surveyed urban unemployment rate at around 5.5%.

Major Tailwinds for the RMB Remain Intact The RMB rose strongly in 2020, with the onshore CNY gaining 6.7% and the offshore CNH up by 7.1%. The strength of the RMB can be attributed to China’s economic outperformance, relatively prudent monetary policy, the swift recovery of exports, and persistent dollar weakness.