FX.co ★ China 10Y Yield at Near 2-Month Low

China’s 10-year government bond yield fell to around 1.67% on Tuesday, approaching its lowest level since mid-July, as strong trade figures bolstered expectations that external demand will help sustain economic growth. Exports rose 25.0% year-on-year to USD 401.44 billion in August 2026, accelerating from July’s 23.9% growth. Imports increased 28.2% to USD 282.4 billion, up from 27.5% in the previous month and marking an eighth consecutive month of double-digit expansion. As a result, the trade surplus widened to USD 119.09 billion in August from USD 101.09 billion a year earlier, in line with market expectations. This solid trade performance comes as Washington steps up pressure on Beijing to narrow trade imbalances ahead of a planned Trump–Xi meeting, while trade tensions between Beijing and Brussels are also escalating ahead of an October deadline to address imbalances that EU leaders increasingly view as a strategic concern.