China’s 10-year government bond yield fell to around 1.67% on Monday, hitting its lowest level since July 2025, after the People’s Bank of China kept its benchmark lending rates unchanged for a 16th straight month at record lows. The one-year loan prime rate (LPR) was maintained at 3.0%, while the five-year LPR was held at 3.5%. The decision comes as policymakers face limited scope for further monetary easing after other major central banks shifted toward tighter policy, while the yield premium of 10-year US Treasuries over Chinese government bonds remained near a record high. Still, slowing economic growth, subdued inflation and weak credit demand continue to leave the door open to a rate cut before year-end. Meanwhile, investor attention remained focused on high-level US-China engagement after negotiators met on Sunday to pave the way for a closely watched summit between Presidents Donald Trump and Xi Jinping on September 24.