China 10Y Yield Extends Decline

2026-07-09 02:31 By Czyrill Jean Coloma 1 min. read

China's 10-year government bond yield fell to 1.73% on Thursday, extending the previous session's decline and touching its lowest level in a week as investors responded to the People's Bank of China's reaffirmation of an accommodative monetary policy stance.

The central bank pledged to maintain appropriately supportive policy settings and strengthen financial backing for domestic consumption, while acknowledging persistent imbalances between robust supply and relatively weak demand.

Recent data showed that annual consumer inflation eased to a three-month low of 1.0% in June from 1.2% in May, while producer-price inflation increased to 4.1% from 3.9%, marking its fastest pace since July 2022.

The latest figures highlighted the continued divergence between consumer and factory-gate price trends.

Nevertheless, the PBOC has kept key interest rates and reserve requirement ratios unchanged, focusing instead on refining its policy framework and improving monetary policy transmission.



News Stream
China 10Y Yield Extends Decline
China's 10-year government bond yield fell to 1.73% on Thursday, extending the previous session's decline and touching its lowest level in a week as investors responded to the People's Bank of China's reaffirmation of an accommodative monetary policy stance. The central bank pledged to maintain appropriately supportive policy settings and strengthen financial backing for domestic consumption, while acknowledging persistent imbalances between robust supply and relatively weak demand. Recent data showed that annual consumer inflation eased to a three-month low of 1.0% in June from 1.2% in May, while producer-price inflation increased to 4.1% from 3.9%, marking its fastest pace since July 2022. The latest figures highlighted the continued divergence between consumer and factory-gate price trends. Nevertheless, the PBOC has kept key interest rates and reserve requirement ratios unchanged, focusing instead on refining its policy framework and improving monetary policy transmission.
2026-07-09
China 10Y Yield Falls to 1-Week Low
China's 10-year government bond yield fell to around 1.73% on Wednesday, reaching its lowest level in more than a week as record demand at the latest auction of 10-year government bonds underscored strong investor appetite for sovereign debt. China's sale of 10-year government bonds drew a record bid-to-cover ratio of 7.23, the highest level in Bloomberg data dating back to 2004. The bonds were awarded at an average yield of 1.7249%, with the highest accepted yield at 1.7418%. Market participants said the strong auction demand was likely supported by a recent upward adjustment in auction yields following the removal of certain underwriting rebates, making the securities more attractive to arbitrage investors. Separately, the World Bank forecast China's economic growth to slow to 4.4% in 2026 and 4.3% in 2027, citing a prolonged property market downturn and subdued consumer demand.
2026-07-07
China 10Y Yield Extends Decline
China's 10-year government bond yield fell to around 1.73% on Monday, continuing its slide from the previous session after investors viewed the People's Bank of China's latest moves as signaling greater caution. The central bank purchased a net 10 billion yuan ($1.47 billion) of government bonds in June, down sharply from 50 billion yuan in the previous month and marking the lowest monthly total since October 2025. The pullback in purchases suggests policymakers are seeking to limit further declines in yields and discourage excessive speculation in the bond market. The move also reflects the PBOC's introduction of a new overnight open-market operation last month. On the economic front, a private survey showed that China's services PMI eased to 54.1 in June from 54.4 in May but remained above market expectations of 53.0. Earlier in the week, official data showed that the non-manufacturing PMI edged up to 50.2 from 50.1, defying expectations for a slight contraction of 49.9.
2026-07-03