FX.co ★ China 10-Year Yield Rises on Strong Inflation Data

China's 10-year government bond yield recently rose to approximately 1.8%, marking its highest point in nearly a month. This increase was prompted by weekend data indicating that consumer prices unexpectedly increased by 0.2% in October, recovering from a 0.3% drop in September, and contrary to forecasts that anticipated no change. Meanwhile, producer prices declined by 2.1%, representing the smallest decrease in 14 months. These developments followed trade data from the previous week, which showed an unexpected drop in exports and a slowdown in imports. On the trade front, Beijing lifted its export ban on "dual-use items," including gallium, germanium, antimony, and super-hard materials to the United States. Additionally, China granted exemptions to export controls on chips from the Dutch company Nexperia for civilian use, a decision expected to alleviate supply shortages for automakers and suppliers. Last month, China and the US agreed to extend their temporary trade truce for another year, with both sides making mutual concessions on key issues.