China 10Y Yield Trades Sideways

2026-01-05 04:58 By Joshua Ferrer 1 min. read

China’s 10-year government bond yield hovered around 1.87%, trading in sideways range, as investors weighed the latest PMI figures for signs on the country’s economic outlook.

A private survey showed China’s December composite PMI remained expansionary for the seventh straight month, though services activity recorded its softest growth in six months.

Meanwhile, official data released last week showed the composite PMI climbed to a six-month high, with manufacturing activity unexpectedly returning to expansion and the services PMI rising to a four-month peak.

Markets now await upcoming trade balance and GDP figures this month for further clues.

President Xi Jinping stated that the economy is on track to achieve its 2025 growth of 5%.

Meanwhile, the People's Bank of China continued buying sovereign bonds in December, purchasing about 50 billion yuan of government debt, the third straight month of net purchases as part of ongoing support for liquidity and market stability.



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