China’s 10-year government bond yield held below 1.78%, near a six-week low as hopes for a potential Middle East peace deal eased global inflation concerns, while investors remained cautiously optimistic despite China’s stronger economic momentum at the start of the year. The economy grew 0.5% in the first quarter from a year ago, accelerating from the 4.5% gain in the prior quarter and beating forecasts. However, underlying momentum appeared uneven, with industrial output and retail sales slowing, while the jobless rate hit a thirteen-month high. Meanwhile, the US and Iran are considering extending their two-week ceasefire to allow more time for negotiations, even as the Strait of Hormuz remains effectively closed under a dual blockade. Looking ahead, China is set to issue CNY 15.5 billion of government bonds in Hong Kong on April 22, the largest Dim Sum bond tranche since October 2023, a move expected to support offshore yuan liquidity and put downward pressure on yields.

Octalas AI

Profit

Everyone's racing to cut costs. We're racing to create profit.

Start Selling through Service

Start Trial

Free for 14 days · No credit card required