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

China’s 10-year government bond yield fell to around 1.70% on Monday, its lowest level since August 2025, as investors continued to move into safe-haven assets amid mounting signs of an economic slowdown. Official data showed that China’s Composite PMI rose to 50.5 in May from 50.1 in April, supported by a modest recovery in the non-manufacturing sector (50.1 vs. 49.4), while the manufacturing PMI slipped slightly (50.0 vs. 50.3). A private survey also indicated that the manufacturing PMI eased to 51.8 from April’s five-year high of 52.2.

Earlier releases had already pointed to a broader loss of momentum, with retail sales growth slowing to its weakest pace since December 2022 and industrial production expanding at its slowest rate since July 2023. At the same time, companies remained focused on developments in the Middle East, where persistent regional tensions have been weighing on demand and pushing up costs, and uncertainty over a potential US–Iran ceasefire deal continued to cloud the outlook.