2026.07.0902:31:08UTC+00China 10Y Yield Extends Decline

China’s 10-year government bond yield fell to 1.73% on Thursday, extending the previous session’s decline and hitting a one-week low as investors reacted to the People’s Bank of China’s reiterated commitment to an accommodative monetary policy. The central bank vowed to keep policy settings appropriately supportive and to bolster financial support for domestic consumption, while acknowledging ongoing imbalances between strong supply and relatively weak demand.

Fresh data showed that annual consumer inflation eased to a three-month low of 1.0% in June from 1.2% in May, while producer-price inflation accelerated to 4.1% from 3.9%, its fastest pace since July 2022. These figures underscored the persistent divergence between consumer prices and factory-gate prices. Even so, the PBOC has left key interest rates and reserve requirement ratios unchanged, instead prioritizing refinements to its policy framework and improvements in the transmission of monetary policy.