FX.co ★ China 10Y Yield Rebounds as Growth Outlook Dims

China’s 10-year government bond yield climbed to around 1.73% on Tuesday, rebounding after two straight sessions of declines, as investors digested the latest economic outlook from the World Bank. The institution projects that China’s economic growth will ease to 4.4% in 2026 and 4.3% in 2027, pointing to a prolonged property market downturn and muted consumer demand. It also warned that a deeper correction in the housing market could further drag on consumption, real estate investment, and related industries.

China’s economy grew 5.0% year-on-year in the first quarter of 2026, up from 4.5% in the previous quarter and above market expectations of 4.8%. This was the fastest annual pace in three quarters, supported by resilient export performance.

Separately, mainland China and Hong Kong announced a package of measures to boost cooperation across currency, bond, and gold markets, further reinforcing Hong Kong’s role as a leading offshore yuan trading hub.