China 10Y Yield Hits Over 1-Year Low

China’s 10-year government bond yield dropped to around 1.69% on Thursday, hitting its lowest level since mid-July 2025, as investors welcomed fresh signals of policy support from the People’s Bank of China. The central bank pledged to roll out additional measures in a timely manner, saying it would make full use of existing policy tools, introduce “practical and effective” new measures when needed, and strengthen countercyclical adjustments. The PBOC also vowed to step up support for domestic demand, technological innovation, and small and medium-sized enterprises. However, the absence of details on any major easing measures reinforced expectations that broad-based monetary stimulus remains unlikely in the near term. Separately, the PBOC conducted no seven-day reverse repos for a third consecutive session on Thursday, while announcing plans to inject up to CNY 600 billion per day through overnight reverse repos on August 14 and August 17–19.



