China 10Y Yield Returns to 1-Year Low

2026-08-10 03:32 By Czyrill Jean Coloma 1 min. read

China’s 10-year government bond yield fell to around 1.70% on Monday, returning to its lowest level since August 2025, as softer inflation data reinforced expectations that Beijing has greater flexibility to provide additional policy support in the remainder of the year.

Annual consumer inflation eased to a six-month low of 0.5% in July, reflecting further declines in food prices and slower growth in non-food costs.

Producer prices also slowed to 3.5% from 4.1%, marking its first deceleration since turning positive in March following the oil-price surge linked to tensions in the Middle East.

At a recent meeting, the Political Bureau of the Communist Party of China Central Committee pledged more proactive and effective macroeconomic policies, faster deployment of fiscal funds and bond proceeds, and continued support for equipment upgrades and consumer goods trade-ins.

It also stressed boosting domestic demand amid weak consumer spending, despite strong exports and industrial activity.



News Stream
China 10Y Yield Returns to 1-Year Low
China’s 10-year government bond yield fell to around 1.70% on Monday, returning to its lowest level since August 2025, as softer inflation data reinforced expectations that Beijing has greater flexibility to provide additional policy support in the remainder of the year. Annual consumer inflation eased to a six-month low of 0.5% in July, reflecting further declines in food prices and slower growth in non-food costs. Producer prices also slowed to 3.5% from 4.1%, marking its first deceleration since turning positive in March following the oil-price surge linked to tensions in the Middle East. At a recent meeting, the Political Bureau of the Communist Party of China Central Committee pledged more proactive and effective macroeconomic policies, faster deployment of fiscal funds and bond proceeds, and continued support for equipment upgrades and consumer goods trade-ins. It also stressed boosting domestic demand amid weak consumer spending, despite strong exports and industrial activity.
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