2026.07.3102:32:19UTC+00China 10Y Yield Hits 1-Month Low

China’s 10-year government bond yield fell to 1.70% on Friday, its lowest level in a month, as Hong Kong’s relaunch of Chinese government bond futures underscored Beijing’s drive to deepen debt market integration and advance yuan internationalization. The futures, set to debut Monday on the Hong Kong Exchange, represent the third attempt at such a product, with investors now viewing conditions as more favorable amid Beijing’s efforts to broaden foreign access to its onshore bond market. The five-year contract will have a notional value of CNY 500,000 ($73,985) and will be cash-settled rather than physically delivered. At the same time, investors remained focused on the prospect of additional policy support after China’s latest PMI data showed manufacturing activity slipping into contraction in July 2026 for the first time since February, while non-manufacturing activity also posted an unexpected decline. The Politburo meeting reaffirmed the government’s commitment to bolstering economic support but offered few specifics on the size or timing of any forthcoming stimulus measures.