China 10Y Yield Hits Over 5-Month High

China’s 10-year government bond yield climbed to around 1.87% on Monday, hitting its highest level since early April, as markets expected no change in this week’s PBOC decision despite disappointing economic data. Reports showed retail sales and industrial output growth both missed forecasts in August, underscoring persistent weakness in domestic demand, while fixed-asset investment slowed further and the jobless rate rose to a six-month high. The National Bureau of Statistics acknowledged these risks, urging full implementation of macro policies to stabilize employment, businesses, and market expectations while deepening reform and innovation—a stance that investors interpreted as limiting scope for near-term stimulus, pushing long-term yields higher. Meanwhile, markets also tracked US-China talks in Spain, the fourth meeting in four months, focused on national security, trade, and economic issues, including TikTok’s divestment deadline and planned US tariffs.