China 10-Year Yield Extends Losses

2026-03-05 04:12 By Czyrill Jean Coloma 1 min. read

China’s 10-year government bond yield fell to around 1.78% on Friday, extending losses from the previous session as investors favored safer assets amid concerns over a lower GDP growth target.

The Chinese government set a GDP growth goal of roughly 4.5%–5% for 2026, its most restrained target since 1991.

The target signals a shift toward slower but more sustainable growth and less reliance on debt-driven property and infrastructure investment.

It also shows that Beijing recognizes the four-decade growth model is facing mounting structural pressures.

Similarly, the budget deficit will remain around 4% of GDP to support the economy amid domestic challenges and geopolitical risks.

Meanwhile, bonds sold in China by overseas entities or issued abroad have raised a record CNY 218 billion this year, with the Indonesian government and Morgan Stanley among the participants.

This brings the total borrowed via notes and loans in 2025 to $167 billion, a threefold increase over five years.



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