China 10Y Bond Yield Hits 4-week Low

China’s 10-year government bond yield fell to around 1.67% on Monday, hitting its lowest level since July 2025, after the People’s Bank of China kept its benchmark lending rates unchanged for a 16th straight month at record lows. The one-year loan prime rate (LPR) was maintained at 3.0%, while the five-year LPR was held at 3.5%. The decision comes as policymakers face limited scope for further monetary easing after other major central banks shifted toward tighter policy, while the yield premium of 10-year US Treasuries over Chinese government bonds remained near a record high. Still, slowing economic growth, subdued inflation and weak credit demand continue to leave the door open to a rate cut before year-end. Meanwhile, investor attention remained focused on high-level US-China engagement after negotiators met on Sunday to pave the way for a closely watched summit between Presidents Donald Trump and Xi Jinping on September 24.

China 10 Year Government Bond Yield decreased to 1.68%, the lowest since August 2026. Over the past 4 weeks, China 10Y Bond Yield lost 1.00 basis points, and in the last 12 months, it decreased 20.50 basis points.

China’s 10-year government bond yield steadied around 1.68% on Friday, holding at its lowest level in a month as optimism over high-level US-China talks continued to support sentiment. US Treasury Secretary Scott Bessent said he will meet Chinese Vice Premier He Lifeng this weekend ahead of the September 24 Trump-Xi summit in Washington. Growing competition in AI and China’s access to advanced US chips are widely expected to feature prominently in the upcoming meeting, while investors look for progress on tariffs, China’s rare-earth export restrictions, the yuan and a possible extension of the trade truce set to expire in November. Adding to the positive tone, reports suggested the US is likely to delay any new tariff announcements targeting China and other trading partners until after next week’s summit.