Who Has the Weakest Banks — the US or China?: Shuli Ren

Wherever you look, banks seem to be paying the price for their governments’ past policy errors. Lenders in the world’s two largest economies are in a horse race to see which one spirals to the bottom first.

In the US, government borrowing exploded during the pandemic, mostly in the form of short-term Treasury bills. To refinance those bills as well as the growing spending deficit, Washington will have to sell much more long-term debt — the question now is whether investors have the appetite. This has created a bond rout, pushing the 10-year sovereign yield to the highest since 2007. ...