China’s 10-year government bond yield rose above 1.81% on Tuesday, extending its recovery from a nearly seven-month low as strong domestic trade data lifted risk sentiment, while markets weighed US President Trump’s remarks over the Middle East war’s duration. Figures showed that China’s exports grew faster than expected in the first two months of the year, highlighting resilient external demand before the Iran conflict disrupted global trade flows, while imports also posted solid gains, pushing the trade surplus to a record high. Meanwhile, Trump said the US military operation in Iran may be nearing its conclusion and progressing faster than initially anticipated. Oil prices also pulled back after he outlined measures aimed at containing energy costs, easing concerns about prolonged supply disruptions and renewed inflation pressures. Still, China is expected to weather oil price shocks better than other major economies due to its vast crude stockpiles and diversified energy sources.
