FX.co ★ China 10Y Yield Hovers Near 2025 Low

China’s 10-year government bond yield fell to around 1.65% on Tuesday, hovering near its lowest level since June 2025, after the People’s Bank of China (PBoC) left its benchmark lending rates unchanged. The central bank kept the one-year loan prime rate (LPR) at 3% and the five-year LPR at 3.5%, maintaining both at record lows for the 17th consecutive month. The decision came after data showed the Chinese economy grew 4.5% year-on-year in Q3 2026, up from a three-year low in Q2 and surpassing market expectations. This rebound keeps Beijing’s full-year growth target of 4.5%–5.0% within reach, allowing policymakers more flexibility to postpone broad-based monetary easing after rolling out new targeted support measures. At the same time, PBoC Governor Pan Gongsheng signaled that the central bank will place greater emphasis on short-term interest rates, with the overnight interbank repo rate potentially becoming a benchmark for bonds and financial derivatives, while the LPR remains the key reference rate for corporate and household loans.