China 10Y Yield Dips Near Two-Week Low

Trading Economics
2026.01.12 05:10
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China’s 10-year government bond yield dropped to 1.87%, its lowest in nearly two weeks, amid expectations for continued accommodative policy. Despite December consumer inflation reaching a three-year high, full-year inflation remains low, indicating weak domestic demand. Policymakers are likely to maintain an accommodative stance with interest rate cuts and flexible reserve requirements. China plans to auction a record 522 billion yuan in bonds in January, including a significant two-year note sale, as investors monitor upcoming auctions for demand amid heavy supply.