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

China’s 10-year government bond yield dipped to approximately 1.80% on Friday, marking its third straight decline as investors gravitated towards safer investments amid discouraging economic indicators. From January to October 2025, fixed-asset investment diminished by 1.7% on a year-over-year basis, a significant downturn from market expectations and the previous month's figures. Additionally, industrial production slowed to its lowest in over a year, registering a mere 4.9% in October. Retail sales continued their downward trend, declining for the fifth consecutive month and recording the feeblest growth rate in over a year at 2.9%. However, there was a slight improvement in the labor market, with the unemployment rate decreasing to a four-month low of 5.1%, surpassing both expectations and the prior month's rate. This latest economic data, coupled with an unexpected contraction in exports, has intensified concerns surrounding China’s economic growth outlook.