China's yuan touches nine-day low as more pressure seen on yield gap

China's yuan touched its lowest level in more than a week against the US dollar as a narrowing yield gap and traders' concerns over the impact of the Ukraine crisis weighed

China's yuan touched its lowest level in more than a week against the U.S. dollar on Thursday as a narrowing yield gap and traders' concerns over the impact of the Ukraine crisis weighed.

The spread between the benchmark Chinese and U.S. 10-year yields has narrowed this week to as little as 35.5 basis points, its narrowest since March 2019, as predictions of U.S. policy tightening have come up against expectations that China will implement more loosening to bolster a slowing economy.

While the spread widened to around 48 basis points on Thursday, it remained near levels last seen in March 2019 levels