China 10Y Yield Hits Over 1-Month Low

2026-04-13 03:04 By Czyrill Jean Coloma 1 min. read

China’s 10-year government bond yield fell to around 1.80% on Monday, hitting its lowest level in over a month as investors sought refuge in safe-haven assets following failed US–Iran peace talks.

The negotiations ended without a breakthrough, while President Trump announced a full naval blockade of the Strait of Hormuz, raising further fears of global energy disruptions.

Trump also warned that countries, including China, could face tariffs of up to 50% if they support Iran militarily, though Beijing denied any involvement.

Amid the evolving Middle East conflict, Chinese assets such as bonds have emerged as relative safe havens, supported by energy resilience, policy support, limited exposure to geopolitical tensions, and signs of improving domestic momentum, as seen in the exit from producer deflation that has persisted since September 2022.

The 10-year yield has risen by only about 3 bps through Friday, compared with gains of at least 40 bps in US and European peers.



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