FX.co ★ China 10Y Yield Remains at Over 1-Year Low

China’s 10-year government bond yield hovered around 1.68% on Monday, holding at its lowest level in more than a year as a series of weaker-than-expected economic indicators reinforced expectations of additional policy stimulus to support growth. Fixed-asset investment declined 6.7% year-on-year in the first seven months of 2026, a steeper drop than the 6.2% contraction forecast by analysts. Industrial output growth slowed to 4.5% in July from 5.3% in June, missing the 5% consensus estimate, while retail sales rose just 0.6%, below expectations of 1.5% and down from 1% in the previous month. Meanwhile, the surveyed urban unemployment rate inched up to 5.2%, its highest reading in three months. China’s National Bureau of Statistics said the economy has remained “generally stable” so far this year, but cautioned that the external environment is “complicated and volatile” and that domestic demand remains fragile. Those comments, together with the latest data, have strengthened investor expectations of further stimulus to keep the economy on course to meet this year’s growth target.