FX.co ★ China 10-Year Yield Steady After PBOC Holds Rates

China's 10-year government bond yield remained steady at approximately 1.64% on Friday, as markets absorbed the latest policy announcement from the People's Bank of China. Consistent with market expectations, the central bank elected to maintain key lending rates during the June adjustment. The one-year loan prime rate (LPR) held its record low position at 3%, while the five-year LPR also remained at an unprecedented low of 3.5%. This decision follows a 10 basis point rate cut implemented last month, which aimed to alleviate economic pressures arising from potential repercussions of US tariffs. Additionally, this comes in the wake of major state-owned banks reducing deposit rates. On the international stage, reports suggest that US President Donald Trump has issued a final ultimatum to Iran to resolve its nuclear program, postponing any decision on potential military action by up to two weeks. Meanwhile, China has promptly criticized Israel for its attack on Iran, though Beijing has stopped short of offering Iran significant support beyond regular trade engagements.