FX.co ★ China 10Y Yield Falls After Inflation Data

China's 10-year government bond yield has decreased to its lowest point in a week, settling around 1.84%, as investors digest the latest inflation figures, which introduce greater complexity into the monetary policy landscape. In November 2025, consumer prices increased by 0.7% year over year, reaching their highest point since February 2024. The Politburo has pledged to enhance domestic demand and bolster the broader economy in 2026, while maintaining a cautious approach to stimulus interventions. Concurrently, producer price deflation intensified to 2.2% in November, marking the 38th consecutive month of declines. Beijing remains committed to addressing what it terms "disorderly" price competition, though progress has been limited due to apprehensions that more forceful regulatory actions might endanger employment or hinder the already delicate growth. Market attention is now turning to the forthcoming Central Economic Work Conference, where policymakers are anticipated to set growth targets for the following year and outline the principal policy priorities for China's 2026 economic strategy.