China’s 10-year government bond yield fell to around 1.65% on Tuesday, hovering near its lowest level since June 2025 after the People’s Bank of China left its benchmark lending rates unchanged. The central bank kept the one-year loan prime rate at 3% and the five-year rate at 3.5%, holding both at record lows for a 17th consecutive month. The decision followed data showing China’s economy grew 4.5% year-over-year in Q3 2026, accelerating from a three-year low in Q2 and beating market forecasts. The rebound keeps Beijing’s full-year growth target of 4.5%–5.0% within reach, giving policymakers more room to delay broad-based monetary easing after introducing fresh targeted support measures. Meanwhile, PBoC Governor Pan Gongsheng said the central bank would place greater emphasis on short-term interest rates, with the overnight interbank repo rate potentially serving as a benchmark for bonds and financial derivatives while the LPR remains the benchmark for corporate and personal loans.