FX.co ★ China 10Y Yield Rises Amid T-Bond Issuance

On Thursday, the yield on China's 10-year government bond edged closer to 1.83%, maintaining distance from the one-month low recorded earlier this week. This shift comes as China has issued a fresh series of treasury bonds. The initial tranche of these ultra-long-term special treasury bonds amounts to CNY 93.6 billion (approximately $13.44 billion) and is aimed at advancing equipment upgrades across several key sectors, including industry, energy, education, healthcare, and the refurbishment of aging residential elevators. This initiative follows December's funding of CNY 62.5 billion (around $8.98 billion), which supported a consumer goods trade-in scheme and extended equipment upgrades to further sectors pertinent to livelihoods in 2026. The increased issuance of long-term government debt has exerted short-term upward pressure on yields as investors recalibrate their risk and return assessments. From an economic perspective, the urban youth unemployment rate for those aged 16 to 24, excluding students, experienced a decline to 16.5% in November 2025, down from 16.9% the previous month, marking the lowest level since June.