FX.co ★ China 10-Year Yield Steady

China's 10-year government bond yield remained stable at 1.64% on Thursday, as investors evaluated the latest Purchasing Managers' Index (PMI) data. The Caixin China General Composite PMI returned to expansion mode, marking its highest point since March. This growth was primarily attributed to an uptick in manufacturing activity, which compensated for a decline in the services sector that reached a nine-month low. Earlier in the week, official PMI figures presented a slightly different picture: while the manufacturing PMI was still contracting, it displayed signs of gradual recovery, and the non-manufacturing PMI showed modest growth, indicative of China's ongoing efforts to boost domestic demand and support its faltering economy. Markets are now focused on significant economic indicators expected next week, notably inflation and trade data. Additionally, there is growing interest in this month's Politburo meeting, where investors are keenly awaiting potential new stimulus measures in response to ongoing economic challenges, such as the prospect of impending US tariffs.