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Is China to Blame for Rising U.S. Interest Rates?

Could turmoil in Chinese financial markets be the cause of the rise in interest rates on U.S. Treasuries?

Could turmoil in Chinese financial markets be the cause of the rise in interest rates on U.S. Treasuries?

Danske Bank's chief emerging-markets analyst, Lars Christensen, explained the theory to me earlier today. Last week, China's central bank deliberately withdrew liquidity and pushed up the short-term interest rates banks pay to borrow from each other, in an effort to shove the Chinese banking system toward less risk-taking.