China 10Y Yield Steady for 3rd Session

China’s 10-year government bond yield held around 1.68% for a third straight session on Thursday, as fresh industrial profit data underscored persistent weakness in the economy. Industrial profits rose 17.6% year-on-year to CNY 4.58 trillion in the first seven months of 2026, easing from an 18.7% increase in the January–June period. The slowdown pointed to mounting pressure on profitability due to subdued domestic demand and the fading boost from earlier oil price gains. The figures added to concerns over China’s growth outlook after July data showed industrial output, retail sales, and fixed-asset investment all undershot expectations. Earlier this week, the People’s Bank of China kept its key lending rates at record lows, holding the one-year LPR at 3.0% and the five-year LPR at 3.5%, signaling a sustained cautious stance. Investors are watching the National People’s Congress Standing Committee meeting, which ends August 28, for fresh measures to support growth.





