China’s 10-year government bond yield climbed above 1.81% on Tuesday, extending its rebound from a nearly seven-month low. The move was supported by stronger risk appetite following robust domestic trade data, even as markets assessed US President Trump’s comments on how long the Middle East war might last.
Official figures showed that China’s exports grew faster than expected in the first two months of the year, underscoring resilient external demand ahead of the Iran conflict’s disruption to global trade flows. Imports also recorded solid increases, driving the trade surplus to a record high.
At the same time, Trump indicated that the US military operation in Iran may be nearing its end and is progressing more quickly than initially anticipated. Oil prices retreated after he announced measures aimed at containing energy costs, easing worries over prolonged supply disruptions and a renewed pickup in inflation.
Nonetheless, China is widely seen as better positioned than other major economies to absorb oil price shocks, thanks to its substantial crude reserves and diversified energy supply mix.
