China 10Y Bond Yield Hits 51-week Low

China's 10-year government bond yield dropped to around 1.70% on Monday, approaching its lowest level in a year as the launch of government bond futures in Hong Kong boosted efforts to deepen market access. In its third attempt, China launched five-year government bond futures, with the September contract opening at 106.685 yuan per contract and a notional value of 500,000 yuan ($74,058). The launch marks another step in China's efforts to attract overseas investors and promote yuan internationalization. Separately, the PBoC reiterated its commitment to supporting the real economy by maintaining a moderately loose monetary stance, adjusting policy tools as needed, and ensuring ample liquidity. On the economic front, the latest PMI data highlighted renewed challenges for China's manufacturing sector. A private-sector survey showed that the manufacturing PMI fell to a four-month low in July 2026, while official data indicated that it contracted for the first time since February.

China 10 Year Government Bond Yield decreased to 1.70%, the lowest since August 2025. Over the past 4 weeks, China 10Y Bond Yield lost 3.40 basis points, and in the last 12 months, it decreased 0.10 basis points.

China’s 10-year government bond yield fell to 1.70% on Friday, hitting its lowest level in a month, as Hong Kong’s relaunch of Chinese government bond futures signaled Beijing’s push to deepen debt market integration and yuan internationalization. The futures, debuting Monday on the Hong Kong Exchange, mark a third attempt, with investors seeing more favorable conditions amid Beijing’s efforts to expand foreign access to its bond market. The five-year contract will have a CNY 500,000 ($73,985) notional size, with cash settlement instead of physical delivery. Meanwhile, investors remained focused on potential policy support after China’s latest PMI data showed manufacturing activity slipped into contraction for the first time since February in July 2026, while non-manufacturing activity unexpectedly declined. The Politburo meeting reaffirmed plans to strengthen economic support but provided limited details on the scale and timing of potential stimulus measures.