FX.co ★ China 10-Year Yield Stays at Over 2-Month Lows

The yield on China's 10-year government bond remained steady at approximately 1.63% on Wednesday, marking its lowest point in over two months. This trend followed the release of unexpectedly weak PMI figures. Official reports indicated that the manufacturing PMI in April 2025 fell more sharply than anticipated, following a peak in March that marked a one-year high. Likewise, the services PMI dropped from its three-month high in March, not meeting expectations for April. Additionally, a private sector survey disclosed a decline in manufacturing PMI from a four-month high recorded in the previous month. These weak indicators highlight the ongoing obstacles that the Chinese economy faces, particularly amid continuing trade tensions with the United States. In a recent announcement, China's Foreign Ministry published a video on social media urging the international community to resist what it termed as US economic aggression. While the video did not directly mention the recent reciprocal tariffs, it was intended as a defiant message to the US and a call for global solidarity.