China 10Y Yield at Near 2-Month Low

China’s 10-year government bond yield fell to around 1.67% on Tuesday, nearing its lowest level since mid-July, as robust trade data strengthened expectations that external demand will support economic growth. Exports surged 25.0% year-on-year to USD 401.44 billion in August 2026, accelerating from 23.9% growth in July, while imports jumped 28.2% to USD 282.4 billion, up from 27.5% in the previous month and marking an eighth consecutive month of double-digit growth. The trade surplus widened to USD 119.09 billion in August from USD 101.09 billion a year earlier, matching expectations. The solid trade performance comes as Washington intensifies pressure on Beijing to narrow trade imbalances ahead of a planned Trump-Xi meeting, while trade frictions between Beijing and Brussels are also intensifying ahead of an October deadline to address imbalances that EU leaders increasingly regard as a strategic concern.




