China 10Y Yield Approaches 1-Year Low
2026-08-03 02:21
By
Czyrill Jean Coloma
1 min. read
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.