China 10Y Yield Lingers Near 1-Year Low

China’s 10-year government bond yield rose toward 1.69% on Thursday but remained near its lowest level since July 2025 after the People’s Bank of China left its benchmark lending rates unchanged at record lows for a fifteenth consecutive month. The central bank left the one-year loan prime rate (LPR) at 3.0% and the five-year LPR at 3.5%, signaling a measured policy approach as it reiterated its commitment to maintaining an accommodative monetary stance. Meanwhile, expectations for additional stimulus measures remain elevated following a string of weak July economic indicators, including softer industrial output, retail sales, and fixed-asset investment data. Looking ahead, markets are turning their attention to the National People’s Congress Standing Committee meeting in Beijing from August 25 to 28, where investors will watch closely for fresh policy guidance and potential stimulus measures to support economic recovery.




