China 10Y Yield Continues to Rebound

2026-04-23 06:41 By Czyrill Jean Coloma 1 min. read

China’s 10-year government bond yield rose toward 1.75% on Friday, staying away from the recently reached eight-month low, as investors positioned ahead of a large ultra-long bond issuance.

China’s Ministry of Finance is preparing to test demand at the long end of the curve with a CNY 85 billion 30-year bond sale on Friday, the largest single issuance of its kind since 2007.

Moreover, issuance of 20-, 30-, and 50-year bonds is planned through October, easing earlier speculation that shorter-dated ultra-long instruments, such as 15-year bonds, might be introduced instead.

The yield curve has been sensitive to supply expectations, with the spread between 30- and 10-year yields recently widening to a four-year high amid concerns over heavy long-dated issuance and inflation risks.

Nevertheless, some analysts expect 10-year yields to drift toward 1.7% and 30-year yields toward 2.1%, assuming stable policy conditions.



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