China’s 10-year government bond yield climbed toward 1.75% on Thursday, rebounding from a three-week low in the previous session, as investors turned cautious with the start of a high-stakes meeting between Presidents Donald Trump and Xi Jinping. Opening the summit, Xi stressed that the success of both China and the US creates opportunities for each other and that a stable bilateral relationship benefits the world. Trump said ties between the two countries would be “better than ever before.”
The talks are expected to span a broad agenda, including the conflict involving Iran, trade, artificial intelligence, and Taiwan. Trump is expected to press Xi to use China’s relationship with Iran to help facilitate the reopening of the Strait of Hormuz, though he has publicly downplayed that issue in favor of prioritizing trade and market access. The summit, which had been delayed for weeks amid tensions in the Middle East, is being closely monitored by financial markets for any signs of a breakthrough in US–China relations, particularly regarding trade flows.
