China 10Y Yield Nears 2025 Low

China’s 10-year government bond yield traded around 1.68% on Tuesday, approaching its lowest level since July 2025 as investors anticipate further policy support following a mixed batch of economic data. Fixed-asset investment fell 7.2% in the January–August period, marking the steepest decline for the period since January–April 2020, while retail sales growth slowed to a three-month low of 0.4% in August. The unemployment rate also edged up to a five-month high of 5.3% from 5.2% in July. On the brighter side, the decline in house prices eased to 3% yoy in August, the softest contraction since December 2025, while industrial output growth accelerated to 5.2% from 4.5% in July. Although China has begun stepping up fiscal support after a prolonged contraction in public spending, mounting signs of economic weakness are keeping pressure on policymakers to roll out additional stimulus.



