China 10Y Yield Falls as PBOC Stands Pat

2025-12-22 04:00 By Joshua Ferrer 1 min. read

China’s 10-year government bond yield fell to around 1.83%, as investors weighed the People’s Bank of China’s decision to keep lending rates unchanged.

The PBOC left its one-year Loan Prime Rate at 3% and the five-year LPR at 3.50%, holding both for a seventh straight month at its December meeting.

Analysts noted that the PBoC’s use of “cross-cyclical” measures and thin bank profit margins gives policymakers the flexibility to postpone new stimulus until next year.

The move comes as November data showed slowing factory output and retail sales, weaker household borrowing, and ongoing strains in the property sector.

Investors are now closely watching the conclusion of the National People’s Congress Standing Committee meeting for potential signs of additional policy support.

During the Central Economic Work Conference, officials pledged proactive fiscal support in 2026 to boost consumption and investment, aiming for growth of roughly 5%.



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