China’s 10-year government bond yield fell to around 1.78% on Tuesday, its third consecutive decline and the lowest level in six weeks, after trade data came in weaker than expected. Export growth slowed sharply to 2.5% year-on-year in March, a five-month low, with shipments totaling USD 321.03 billion. In contrast, imports jumped 27.8% to a record USD 511.3 billion, the fastest pace since November 2021.
As a result, the trade surplus narrowed sharply to USD 51.13 billion in March 2026, the smallest in more than a year, from USD 101.93 billion a year earlier and well below market expectations of USD 112 billion.
Market sentiment was also shaped by renewed diplomatic signals between the United States and Iran. US President Donald Trump said Tehran had sought a potential deal, while Iranian President Masoud Pezeshkian indicated he was open to talks, provided they remain consistent with international law. The comments came after earlier negotiations collapsed and amid continuing US efforts to restrict shipping through the Strait of Hormuz.
