China 10Y Yield Rises on US–China Trade Optimism

2025-10-27 03:09 By Joshua Ferrer 1 min. read

China’s 10-year government bond yield rose toward 1.79% on Monday, marking its highest level in two weeks, as investors embraced riskier assets amid optimism over progress in US-China trade talks.

After two days of talks in Malaysia, officials from both sides reached an initial consensus on issues such as export controls, fentanyl trafficking, agricultural trade, and shipping tariffs.

The constructive tone lifted hopes that Presidents Donald Trump and Xi Jinping could finalize a deal when they meet in South Korea later this week.

On the data front, China’s industrial profits surged 21.6% year-on-year in September, the fastest since November 2023, while January–September profits rose 3.2%, marking the year’s first cumulative gain and signaling a gradual corporate recovery.

Meanwhile, the PBoC injected a net CNY 200 billion in October, offsetting CNY 700 billion of maturing MLF funds and continuing eight straight months of net injections, which capped further gains in long-term yields.



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