China’s 10-Year Yield Rises After PBOC Decision

2025-09-22 03:06 By Joshua Ferrer 1 min. read

China’s 10-year government bond yield rose toward 1.89% on Wednesday, as investors digested the People’s Bank of China’s latest rate decision.

The central bank kept its loan prime rates unchanged for the fourth consecutive month in September, holding the one-year LPR at 3.0% and the five-year at 3.5%, after leaving the seven-day reverse repo rate steady last week.

The decision, in line with expectations, underscores policymakers’ cautious stance despite easing Sino-US trade tensions, resilient exports, and a stock market rally, even as growth momentum falters.

August data showed industrial output grew at its slowest pace in over a year and retail sales recorded their weakest gain in nine months, while new yuan loans rebounded but fell short of forecasts, highlighting sluggish credit demand.

Still, markets anticipate modest policy easing later this year as authorities aim to keep economic growth close to the government’s 5% target.



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