FX.co ★ China 10-Year Yield Steadies as Beijing Vows Support

China's 10-year government bond yield remained stable around 1.66% on Monday. This comes as the market anticipates further details on China's stimulus initiatives and the progress of U.S. trade negotiations with regional partners. Over the weekend, Finance Minister Lan Fo’an committed to implementing more proactive macroeconomic policies to bolster growth, with officials scheduled to hold a press conference later today. The briefing will address topics such as stabilizing employment, ensuring sustainable growth, and fostering high-quality development. Investors are also closely monitoring U.S. trade discussions following President Trump's indication that another pause in reciprocal tariffs is unlikely. Last week, tensions between the U.S. and China seemed to soften, with Trump showing willingness to reduce tariffs and China exempting certain imports from its previously imposed 125% levies. However, Beijing refuted claims that trade talks were taking place, despite Trump's assertions of progress. In the meantime, Chinese manufacturers are ceasing production and exploring new markets in response to U.S. tariffs, leading to a decline in orders that is affecting employment and contributing to lower bond yields.