China’s 10-year government bond yield fell to around 1.80% on Friday, marking its third consecutive session of decline as investors sought safety in response to weak economic data. Fixed-asset investment contracted 1.7% year-on-year in January–October 2025, a notable deterioration compared with market forecasts and the previous month’s reading. In addition, industrial output eased to a more-than-one-year low of 4.9% in October, while retail sales posted its fifth consecutive month of deceleration and the weakest growth in over a year at 2.9%. Meanwhile, the only bright spot came from the labor market, where the unemployment rate inched down to a four-month low of 5.1%, slightly better than expectations and the prior month’s level. The latest economic data, together with a recent surprise contraction in exports, has heightened worries about China’s growth trajectory.
