China’s 10-year government bond yield hovered around 1.68% on Tuesday, nearing its lowest level since July 2025 as investors priced in the prospect of further policy easing after a mixed set of economic indicators. Fixed-asset investment declined 7.2% in the January–August period, the sharpest drop for that timeframe since January–April 2020, while retail sales growth slowed to 0.4% in August, a three-month low. The unemployment rate inched up to 5.3% from 5.2% in July, reaching a five-month high.
On a more positive note, the fall in house prices moderated to 3% year-on-year in August, the smallest contraction since December 2025, and industrial output growth accelerated to 5.2%, up from 4.5% in July. Although Beijing has begun ramping up fiscal support after a prolonged period of contracting public expenditure, accumulating signs of economic weakness continue to pressure policymakers to introduce additional stimulus measures.
