2026.10.1403:29:39UTC+00China 10Y Yield Hits Fresh 2025 Low

China’s 10-year government bond yield fell to around 1.67% on Wednesday, its lowest level since June 2025, as robust export growth strengthened confidence in the country’s external sector. The trade surplus widened to $133.53 billion in September 2026 from $88.72 billion a year earlier, the largest surplus since January 2025. Exports jumped 36.3% year-on-year to a record $447.18 billion, while imports climbed 31.0% to an all-time high of $313.66 billion.

At the same time, investors weighed an ongoing recovery in consumer prices against mounting cost pressures. Annual inflation inched up to 0.9% in September from 0.8% in August, a three-month high. Producer price inflation quickened to 5.0% from 3.8%, its fastest pace since June 2022. Renewed hostilities in the Middle East and heightened risks to global oil supplies have pushed up input costs, squeezing corporate profit margins as firms struggle to pass these higher expenses on to consumers.