China 10Y Yield Rises After PBoC Decision

2026-07-20 02:25 By Czyrill Jean Coloma 1 min. read

China’s 10-year government bond yield rose toward 1.74% on Monday, rebounding from the previous session even as the People's Bank of China kept its key lending rates at record lows for a fourteenth straight month in July.

The PBoC left the one-year loan prime rate, the benchmark for most corporate and household loans, unchanged at 3%, while the five-year LPR, a reference rate for mortgages, remained at 3.5%.

The decision came despite softer-than-expected Q2 GDP data that highlighted the uneven nature of China's recovery.

While manufacturing activity and exports remained resilient, weak domestic demand and subdued household consumption continued to weigh on broader economic momentum.

Investor attention is now shifting to the upcoming Politburo meeting later this month, a closely watched event that could provide clues on additional fiscal and monetary support measures as authorities seek to boost domestic demand, stabilize the property sector, and support economic growth.



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China 10Y Yield Rises After PBoC Decision
China’s 10-year government bond yield rose toward 1.74% on Monday, rebounding from the previous session even as the People's Bank of China kept its key lending rates at record lows for a fourteenth straight month in July. The PBoC left the one-year loan prime rate, the benchmark for most corporate and household loans, unchanged at 3%, while the five-year LPR, a reference rate for mortgages, remained at 3.5%. The decision came despite softer-than-expected Q2 GDP data that highlighted the uneven nature of China's recovery. While manufacturing activity and exports remained resilient, weak domestic demand and subdued household consumption continued to weigh on broader economic momentum. Investor attention is now shifting to the upcoming Politburo meeting later this month, a closely watched event that could provide clues on additional fiscal and monetary support measures as authorities seek to boost domestic demand, stabilize the property sector, and support economic growth.
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