China 10Y Yield on 3-Session Declines

2025-12-11 05:58 By Czyrill Jean Coloma 1 min. read

China’s 10-year government bond yield fell to around 1.83%, marking its third consecutive session of declines and hitting a fresh one-week low amid expectations that Beijing may deliver interest rate reductions.

Societe Generale suggests that China’s benchmark bond yields could fall to their lowest-ever level next year, as the People’s Bank of China may reduce rates by as much as 20bps in 2026 to stimulate growth, while carefully managing bond yields to preserve investor demand for government debt.

The developments add a layer of complexity to China’s monetary policy outlook, as the Politburo signaled a cautious stance toward stimulus measures despite pledging to boost domestic demand and support broader economic growth in 2026.

Meanwhile, market attention now turns to the upcoming Central Economic Work Conference, where policymakers are expected to set growth targets for 2026 and outline the key priorities shaping China’s economic policy agenda for the year ahead.



News Stream
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