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Tuesday, September 9, 2025

China’s 10-Year Yield Rises Amid Inflation Data

China’s 10-Year Yield Rises Amid Inflation Data

China’s 10-Year Yield Rises Amid Inflation Data

On Wednesday, the yield on China's 10-year government bonds edged closer to 1.80%, as investors analyzed the latest data on inflation. In August, consumer prices fell by 0.4% compared to the same month last year, following a stagnant reading in July and surpassing market predictions of a 0.2% decrease. Concurrently, producer prices saw a 2.9% drop from the previous year, improving from a 3.6% decline in July, and aligning with expectations. Although this marks the 35th month in a row of producer deflation, it is the mildest reduction since April. These numbers highlight Beijing's ongoing initiatives to stimulate domestic demand while addressing excessive competition and aggressive pricing strategies within critical industrial sectors. Presently, market participants are keenly observing for policy cues as the 14th National People's Congress Standing Committee embarks on its 17th session, running from today until Friday. Meanwhile, on the international trade stage, U.S. President Donald Trump has called on the European Union to impose 100% tariffs on Chinese and Indian products to pressure Russia, with Washington prepared to take independent action if necessary.


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