China 10Y Bond Yield Hits 12-month Low

China's 10-year government bond yield rose toward 1.69% on Thursday but remained near its lowest level since July 2025 after the People's Bank of China left its benchmark lending rates unchanged at record lows for a fifteenth consecutive month. The central bank left the one-year loan prime rate (LPR) at 3.0% and the five-year LPR at 3.5%, signaling a measured policy approach as it reiterated its commitment to maintaining an accommodative monetary stance. Meanwhile, expectations for additional stimulus measures remain elevated following a string of weak July economic indicators, including softer industrial output, retail sales, and fixed-asset investment data. Looking ahead, markets are turning their attention to the National People's Congress Standing Committee meeting in Beijing from August 25 to 28, where investors will watch closely for fresh policy guidance and potential stimulus measures to support economic recovery.

China 10 Year Government Bond Yield decreased to 1.68%, the lowest since July 2025. Over the past 4 weeks, China 10Y Bond Yield lost 6.40 basis points, and in the last 12 months, it decreased 9.10 basis points.

China's 10-year government bond yield traded around 1.67% on Wednesday, hovering near its lowest level since July 2025, as Premier Li Qiang's calls for stronger policy support to achieve this year's economic and social development goals reinforced expectations of further stimulus measures. During his speech, he pledged to accelerate the transition toward new growth drivers, with greater emphasis on major projects such as the "Six Networks." Moreover, pressure is mounting on policymakers to roll out additional stimulus, as many economists estimate GDP growth has slipped further below Beijing's 4.5%–5.0% target. The remarks came after a fresh batch of July data pointed to a broader loss of economic momentum, with industrial production, retail sales, and fixed-asset investment all weakening more than expected. Meanwhile, the Standing Committee of the National People's Congress will convene in Beijing from August 25 to 28, drawing close market attention.