Mighty Yuan, US 10 year and inflation

The Yuan has basically traded one way only since May last year. The Chinese currency has gone from 7.17 to 6.41. As we outlined last autumn, the Yuan dynamics is a huge part of the inflation/yields puzzle. The entire Yuan story is giving us a strong deja vu of the Deutschmark status back in the days when it was the anchor of Europe.

With US 10 year printing new recent highs, let's remind ourselves of what we wrote last autumn;