FX.co ★ China 10Y Yield Hits 3-Week Low

China’s 10-year government bond yield fell to around 1.74% on Wednesday, its lowest level in three weeks, as investors positioned themselves ahead of the closely watched summit between US President Donald Trump and Chinese President Xi Jinping. The two-day meeting is expected to tackle a broad agenda, including trade relations, tariffs, artificial intelligence, Taiwan, and the ongoing conflict in the Middle East. Trump has indicated, however, that his main priority will be trade, suggesting that issues related to the Iran-linked conflict are unlikely to play a major role in the talks. Markets are also monitoring any signs of progress on extending the current trade truce, with tariffs remaining a central point of tension between Washington and Beijing. China has repeatedly criticised US trade actions, while the Trump administration continues to pursue investigations into China’s trade practices.