FX.co ★ China 10Y Yield Up for 3rd Session

On Monday, the yield on China's 10-year government bond climbed slightly to approximately 1.67%, marking its third consecutive session of increases, buoyed by robust trade data that boosted market sentiment. The trade surplus expanded to USD 114.77 billion in June 2025, surpassing expectations, as exports rose by 5.8% compared to the previous year. This rise was largely attributed to accelerated shipments ahead of the August tariff deadlines. Although imports increased by 1.1%, which fell short of projections, they reflected the first annual uptick this year, indicating a gradual recovery in domestic demand. Meanwhile, global trade tensions remained a key focus following the US's confirmation of a 30% tariff imposition on EU and Mexican imports, effective from August 1. Despite the apprehensions this move generated, officials from both regions indicated a willingness to negotiate, with the EU commencing discussions with other impacted parties. Additionally, the announcement that China and ASEAN are preparing to submit their updated free trade agreement for approval in October added further support to market sentiments. Investors are now eagerly awaiting China's second-quarter GDP data, set to be released on Tuesday, where growth is anticipated to decelerate slightly to 5.2% from the previous quarter's 5.4%.