FX.co ★ China 10-Year Yield Drops After Inflation Data

On Wednesday, China's 10-year government bond yield decreased to approximately 1.64%, following the release of varied inflation data. In June 2025, consumer prices increased by 0.1% on an annual basis, breaking a previous three-month pattern of 0.1% declines and exceeding market predictions, which had anticipated no change. Despite this slight recovery in consumer inflation, the growth remained minimal due to continuing difficulties in the property market and the re-imposition of tariffs by U.S. President Donald Trump. Meanwhile, producer prices continued their downward trend, with a 3.6% year-on-year decrease, which was sharper than the projected 3.2% decline and greater than the 3.3% drop recorded in May. This marked the 33rd consecutive month of producer price deflation and represented the most significant contraction since July 2023. The persistent decline in producer prices highlights increasing economic pressures as China contends with weak domestic demand and rising uncertainty amidst intensifying global trade tensions.