China Tweaks Policy to Get Comfortable With Fed’s Rising Rates

This time, China was ready for Janet Yellen.

Unlike in December, when the Federal Reserve raised rates and sent China’s bond market into a tizzy, the People’s Bank of China was able to play it cool. Chinese bond futures actually rose after the Fed’s dovish posture. China’s short-term market rates were mostly steady.

The PBOC isn’t taking it easy, however. On Thursday it raised its own rates a bit, lifting a six-month and…

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