China’s 10-year government bond yield fell to around 1.81% on Thursday, its lowest level in two weeks, as investors shifted into safe-haven assets amid persistent uncertainty surrounding the conflict in the Middle East. The United States was reported to have submitted a 15-point proposal to Iran in an effort to defuse tensions. However, doubts remained after Iranian state media reported that the offer had been rejected, citing a senior political-security official who outlined a counterproposal.
At the same time, US President Trump is scheduled to visit China from May 14 to 15, his first trip to the country in eight years. The visit, which is being closely monitored by global markets, had previously been postponed due to the war with Iran. Trump has also confirmed plans to host President Xi Jinping in Washington later this year. During his stay in Beijing, the two sides are expected to sign goodwill trade agreements, including deals in the agriculture and aircraft parts sectors. Talks are also likely to address areas of significant strain, particularly Taiwan, where little substantive progress is expected.
