China’s 10-year government bond yield fell to around 1.83%, marking its lowest level since late December, as the People’s Bank of China maintained a dovish policy stance. Deputy Governor Zou Lan indicated that the central bank sees “some space” to cut both the reserve requirement ratio and policy rates this year. Starting Monday, the central bank will reduce rates on structural monetary tools, targeted instruments supporting specific sectors such as small firms, tech innovation, and green development, by 25 basis points, lowering the one-year relending rate to 1.25% from 1.5%. The moves reflect a cautious, targeted effort to support an economy weighed down by weak demand and structural imbalances. Meanwhile, investors are focused on a series of key economic releases next week, including Q4 GDP, industrial production, retail sales, and the unemployment rate, alongside the central bank’s decision on loan prime rates.
