2025.11.2003:45:54UTC+00China 10-Year Yield Falls Amid PBOC Rate Hold

On Thursday, China's 10-year government bond yield decreased to approximately 1.80%, reaching its lowest point in nearly a week. This decline occurred despite indications from the central bank that it is not in a hurry to further ease monetary policy, due to ongoing domestic and international challenges. The one-year Loan Prime Rate (LPR), which serves as the benchmark for most corporate and household loans, remained unchanged at 3%. Similarly, the five-year LPR, the main rate for mortgages, held steady at 3.5%, following a 10-basis-point reduction in May 2025. This development is in line with the People's Bank of China's decision to keep the seven-day reverse repo rate constant, suggesting a more conservative approach to monetary policy. Recent economic metrics have underscored persistent challenges, including a noticeable decline in fixed-asset investment, diminishing momentum in industrial production and retail sales, and an unexpected drop in exports. Investors are now eagerly anticipating next week's release of the Purchasing Managers' Index (PMI) for further insights into China's economic prospects.