China’s 10-year government bond yield has dropped to about 1.58%, a record low, as safe-haven demand strengthened amid a sharp equity market selloff and a recent shift in the policy rate framework. Chinese stocks came under renewed pressure—led by a pronounced technology-sector decline—as mounting worries over potential regulatory headwinds for the AI and data center industries weighed on investor sentiment.
At the same time, the PBOC has accelerated its interest rate reform, moving from early November to place greater emphasis on the overnight policy rate and setting it at 1.25%, below the previous seven-day policy rate of 1.4%. The 30-year government bond yield also slipped by about 1 basis point to 2.03%.
Looking ahead, analysts anticipate additional downward pressure on yields, underpinned by lower funding costs and persistently weak domestic demand.
