FX.co ★ China 10-Year Yield Remains Sideways

China's 10-year government bond yield hovered around 1.67%, maintaining a steady course as investors assessed the latest tariff actions by U.S. President Donald Trump. Late Friday, the White House outlined exemptions from hefty tariffs on items such as smartphones, computers, and other electronics predominantly manufactured in China. Nonetheless, uncertainty lingered when Trump clarified over the weekend that this relief was only temporary. These products still face the ongoing 20% tariffs on fentanyl, and Trump indicated that next week would bring an announcement regarding tariff rates on semiconductors. Amidst these developments, markets reacted positively to new data indicating that China's export growth soared to a four-month high in March, far surpassing forecasts, which applied some upward pressure on bond yields. Additionally, President Xi Jinping commenced a tour of Southeast Asia, beginning with Vietnam, aimed at strengthening regional relationships.