China’s 10-year government bond yield fell to below 1.83% on Tuesday, approaching its lowest level in four weeks, as investors weighed the central bank’s latest policy decision, while geopolitical tensions dampened sentiment. The People’s Bank of China kept the one-year and five-year loan prime rates at 3.0% and 3.5%, respectively, extending an eight-month streak of policy stability. The decision highlighted Beijing’s preference for selective stimulus as economic momentum softened, with household spending and the property sector continuing to weigh on domestic demand. Rather than cutting benchmark rates, authorities have focused on targeted measures to support private firms, small businesses, and technology investment. Meanwhile, escalating tensions over Greenland prompted investors to seek safer assets. Denmark is increasing its military presence on the island, while President Trump has threatened tariffs on eight European countries in a bid to take control of the territory.
