FX.co ★ China 10-Year Yield Falls to Near 1-Month Low

China’s 10-year government bond yield fell to around 1.80% on Tuesday, its lowest level in nearly a month, after stronger-than-expected PMI data underscored the resilience of the world’s second-largest economy despite ongoing tensions in the Middle East. Official data showed the composite PMI rising to a three-month high of 50.5 in March 2026, indicating a return to broad-based expansion. The manufacturing PMI reached a one-year high of 50.4, while the non-manufacturing PMI climbed to 50.1, buoyed by government stimulus, solid holiday consumption, and resilient exports in the face of persistent global supply chain disruptions and energy market volatility. Still, although Chinese policymakers have repeatedly emphasized the need to strengthen domestic consumption and reduce dependence on external demand, mounting external risks—particularly the prolonged conflict in the Middle East—could dampen business activity in the coming months.