FX.co ★ China's 10-Year Bond Yield Plunges to 1-Month Low

China's 10-year government bond yield sharply decreased to approximately 1.79% on Thursday, reaching its lowest mark in a month. This decline occurred as investors gravitated towards safer assets following the announcement of aggressive new tariff measures by the US. President Donald Trump imposed an additional 34% tariff on Chinese goods, raising the total duties on China to 54%. This marks the largest tariff increase ever applied to nearly all Chinese exports. Such a significant tariff hike poses a substantial threat to China's export shipments to the US, intensifying the trade tensions between these two major global economies. Other significant world economies are also expected to face notable tariff increases, with the EU subjected to a 20% levy, Japan facing a 24% tariff, and India encountering a 26% rate, alongside a baseline 10% tariff on imports from all countries. These tariffs are slated to be implemented on April 5 for the base rates and on April 9 for the increased reciprocal rates.