China’s 10-year government bond yield fell to around 1.68% on Wednesday, hovering near its lowest level since July 2025 as fresh policy stimulus and upbeat PMI data reinforced expectations of further support for the economy. Policymakers unveiled a new round of measures, including mortgage subsidies and expanded central bank funding support, while the State Council pledged to roll out “a package of practical and effective additional policies.” Despite solid exports and AI-driven support, China’s economy continues to face headwinds, particularly from weak consumer spending and a prolonged slump in the property sector. Meanwhile, official data showed China’s Composite PMI rose to 50.7 in September 2026, its highest since December 2025, as manufacturing (50.1 vs 49.8) and non-manufacturing (50.2 vs 49.0) returned to growth. A private survey also showed the Composite PMI climbed to 52.1, with manufacturing (52.1 vs 51.5) and services (51.6 vs 51.4) continuing to expand.