FX.co ★ China 10Y Yield Rises on Weak Data

China's 10-year government bond yield climbed towards 1.75% on Friday, recovering from a nearly three-month low recorded in the previous session. This movement comes as investors digest the latest weak economic figures. In October, exports experienced their first decline in eight months, reaching the lowest levels since February. Notably, shipments to the US plummeted for the seventh consecutive month, dropping by over 25%, which underscores persistent challenges in US-China trade relations. In an effort to alleviate some trade tensions, the United States and China have agreed to prolong their temporary trade truce for another year. This agreement has raised hopes for improved trade flows between the world's two largest economies as the year progresses. On another front, imports grew at their slowest rate since May and fell short of market expectations, indicating continued weak domestic demand and underlying uncertainties in the labor market. Investors are now turning their attention to the upcoming inflation figures, set to be released over the weekend.