China’s 10-year government bond yield fell to around 1.78% on Tuesday, marking a third straight session of declines and hitting a six-week low, following weaker-than-expected trade data. Export growth slowed markedly to a five-month low of 2.5% year-on-year, reaching USD 321.03 billion, while imports surged 27.8% to a record high of USD 511.3 billion, marking the strongest pace of growth since November 2021. This resulted in the trade surplus narrowing sharply to a more than one-year low of USD 51.13 billion in March 2026 from USD 101.93 billion a year earlier and was well below expectations of USD 112 billion. Sentiment was also influenced by renewed diplomatic signals between the US and Iran. President Donald Trump said Tehran had sought a potential deal, while Iranian President Masoud Pezeshkian signaled openness to talks if they remain consistent with international law. The remarks followed earlier failed negotiations and the US blockade of the Strait of Hormuz.
