China’s 10-year government bond yield climbed toward 1.69% on Thursday, though it remained close to its lowest level since July 2025. The move came after the People’s Bank of China kept its benchmark lending rates at record lows for a fifteenth straight month. The central bank left the one-year loan prime rate (LPR) unchanged at 3.0% and the five-year LPR at 3.5%, signaling a cautious policy stance while reaffirming its commitment to an accommodative monetary framework.
At the same time, expectations for further stimulus remain elevated following a series of weak July data releases, including softer industrial production, retail sales, and fixed-asset investment figures. Looking ahead, market participants are focusing on the upcoming National People’s Congress Standing Committee meeting in Beijing from August 25 to 28, where investors will be closely monitoring any new policy guidance and potential stimulus measures aimed at shoring up the economic recovery.
