FX.co ★ China’s 10-Year Yield Extends Fall to 1-Week Low

China's 10-year government bond yield fell to approximately 1.76% on Wednesday, continuing the decline from the previous day and reaching a one-week low. This movement reflects investors' preference for safer assets amid escalating geopolitical tensions. During the "Victory Day" parade, President Xi Jinping remarked that the world is at a critical juncture between "peace and war" and "dialogue and confrontation." These comments followed a statement from U.S. President Donald Trump, who urged Xi to recognize America's contribution to China's wartime freedom and accused Beijing of orchestrating actions against Washington, further straining US-China relations. Domestically, a private survey indicated that China’s Composite PMI rose to a nine-month high of 51.9 in August 2025. This increase was mainly fueled by an upturn in manufacturing activity, which reached a five-month peak (50.5 compared to 49.5), while the services sector grew to its strongest level in over a year (53 compared to 52.6).