10y UST yield pushed closer to 3% in April – a level not seen since late 2018. Hot inflation, uncertainties from external factors such as the Ukraine-Russia military conflict and market expectations of the hawkish move by the Fed on FFR dragged the yields upwards. ECB confirmed that it would conclude its net asset purchases in 3Q2022, which opens up the possibility for a rate hike in the EU. The market anticipated a July rate hike and some members of the ECB are keen to raise rates sooner. BoE has hiked the rate three times since December 2021, bringing the interest rate back to the pre-pandemic level of 0.75%. Nevertheless, the market perceived that there was still space to raise the rate higher amid persistent inflation in the UK. The narrowing yield premium between CGB and UST bonds led to foreign investors selling Chinese debt. The soaring UST yields diminished the CGB yields advantage, making them less enticing to foreign investors as western central banks tightened monetary policies.