FX.co ★ China’s 10-Year Yield Ends 2-Session Gains

On Thursday, the yield on China's 10-year government bond decreased to about 1.73%, interrupting a two-day upward trend. This change came as investors analyzed the latest Purchasing Managers' Index (PMI) data and the outcomes of the recent Politburo meeting. Official figures indicated a dip in economic momentum for July, with the composite PMI reaching a three-month low of 50.2, down from 50.7 in June. The manufacturing sector continued to contract, dropping to 49.3 from 49.7, while the services PMI recorded its weakest level in eight months at 50.1, down from 50.5. Despite these underwhelming statistics, investor sentiment gained some support from Wednesday's Politburo meeting. The 24-member decision-making body committed to enhancing economic growth and eliminating "disorderly competition" in response to rising economic difficulties. Nevertheless, leaders opted against implementing broad-based stimulus initiatives, choosing instead to concentrate on tackling overcapacity in key sectors.