FX.co ★ China 10Y Yield Rises After PMI Data

China’s 10-year government bond yield climbed to about 1.72% on Tuesday, rebounding from a near one-month low in the prior session. The move followed stronger‑than‑expected PMI data, which eased concerns over the country’s economic outlook and dampened demand for safe-haven assets.

China’s Composite PMI inched up to a six‑month high of 50.6 in June from 50.5 in May. The Manufacturing PMI rose to 50.3 from 50.0, beating market expectations of 50.1, supported by resilient demand for high‑tech exports that helped offset trade disruptions linked to tensions in the Middle East. At the same time, the Non‑Manufacturing PMI edged up to 50.2 from 50.1, above forecasts of 49.9, indicating ongoing stabilization in the services and construction sectors.

On the monetary policy front, the People’s Bank of China conducted overnight reverse repo operations, injecting CNY 300 billion into the financial system to bolster short‑term liquidity management and promote stability in money markets.