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

China’s 10-year government bond yield fell to around 1.68% on Wednesday, hovering near its lowest level since July 2025, as fresh policy stimulus and stronger PMI data bolstered expectations of further economic support. Policymakers announced a new package of measures, including mortgage subsidies and expanded central bank funding facilities, while the State Council pledged to introduce “a package of practical and effective additional policies.”

Despite resilient exports and support from AI-related sectors, China’s economy continues to face significant headwinds, particularly weak consumer spending and a prolonged downturn in the property market.

Official data showed that China’s Composite PMI rose to 50.7 in September 2026, its highest reading since December 2025, as both manufacturing (50.1 vs. 49.8) and non-manufacturing (50.2 vs. 49.0) activity returned to expansion. A separate private-sector survey likewise reported that the Composite PMI climbed to 52.1, with manufacturing (52.1 vs. 51.5) and services (51.6 vs. 51.4) continuing to grow.