24.02.202602:18:41UTC+00China 10Y Yield Nears 3-Month Lows

China’s 10-year government bond yield fell to around 1.79% on Tuesday, moving back toward a three-month low as investors returned from a week-long holiday in a cautious mood amid trade policy uncertainties. At the same time, the People’s Bank of China left key policy rates unchanged for the ninth consecutive month. The central bank maintained its one-year and five-year loan prime rates at 3.0% and 3.5%, respectively, signaling that authorities are in no hurry to introduce broad-based monetary easing following recent targeted sector-specific cuts. The move underscores an effort to strike a careful balance between supporting economic growth and preserving financial stability.

Market sentiment was also weighed down by rising trade tensions. Over the weekend, US President Donald Trump announced plans to increase a temporary 10% tariff on imports to 15%, the maximum permitted under current law. On Monday, he further cautioned that countries retreating from recent trade agreements with the United States could face even higher duties.