FX.co ★ China's 10-Year Bond Yield Falls

China's 10-year government bond yield decreased to approximately 1.64% on Wednesday, following the release of economic data that exceeded expectations. In the first quarter, China's GDP growth outpaced predictions, maintaining its most rapid pace in 18 months. Additionally, industrial production in March 2025 experienced its fastest increase since June 2021, surpassing forecasts. The retail sector also showed robust performance, with trade growth in March reaching its highest level since December 2023, outstripping market projections. The unemployment rate showed positive movement, decreasing in March from a two-year peak observed the previous month. These encouraging results were largely driven by the continued implementation of policy measures intended to bolster the Chinese economy. Nonetheless, the intensifying trade tensions with the United States present an ongoing challenge to China's economic prospects. A recent investigation launched by U.S. President Trump into potential new tariffs on essential mineral imports predominantly sourced from China has intensified concerns.