FX.co ★ China 10Y Yield Remains Near One-Month Low

On Wednesday, China's 10-year government bond yield hovered around 1.75%, staying close to its lowest point in a month. This comes amid enduring deflationary pressures that have heightened expectations for additional policy measures to stimulate the economy. While consumer prices fell more than anticipated in September, the rate of decline showed a slight improvement from August. At the same time, producer prices remained in deflationary territory for the third year in a row in August, although the contraction slowed compared to July. On the trade front, President Donald Trump mentioned that the United States might consider reassessing certain trade relations with China, especially those pertaining to cooking oil. This announcement came after Beijing imposed sanctions on five U.S. subsidiaries of South Korea’s Hanwha Ocean, citing their involvement in Washington’s ongoing scrutiny of China’s maritime and shipbuilding sectors. Nevertheless, President Trump is slated to meet with President Xi Jinping in South Korea later this month in an effort to mitigate tensions.