FX.co ★ China 10-Year Yield Steady

On Monday, China's 10-year government bond yield remained steady at approximately 1.69%, as investors evaluated the potential easing of trade tensions between the US and China alongside recent economic data. Reports indicated that Beijing had granted temporary approvals for the export of rare earth materials, and US-based Boeing resumed commercial jet deliveries to China. This week, Chinese Vice Premier He Lifeng is scheduled to meet with US Treasury Secretary Scott Bessent and his trade team in London for renewed trade discussions. Concurrently, increasing deflationary concerns exerted pressure on yields, with China's consumer prices declining for the fourth consecutive month and producer prices experiencing their steepest drop in nearly two years. These developments highlight Beijing's limited success in boosting domestic demand. This scenario aligns with the latest trade data, which showed a decline in imports due to weak consumption, alongside export growth failing to meet forecasts, despite a temporary trade truce with the US. Nonetheless, China recorded a trade surplus of USD 103 billion, surpassing expectations.