China’s 10-year government bond yield held steady at 1.64% on Thursday, as investors assessed the latest PMI figures. The Caixin China General Composite PMI returned to expansion territory, reaching its highest level since March. This improvement was largely driven by a renewed increase in manufacturing activity, which helped offset a slowdown in the services sector that fell to a nine-month low.
Earlier in the week, official PMI readings offered a slightly different view: the manufacturing PMI remained in contraction but showed signs of gradual recovery, while the non-manufacturing PMI recorded modest growth, reflecting China’s continued efforts to stimulate domestic demand and support its sluggish economy. Markets are now eyeing key economic data due next week, particularly inflation and trade figures. Meanwhile, attention is also shifting to this month’s Politburo meeting, where investors anticipate new stimulus measures amid persistent economic headwinds such as looming US tariffs.
