China 10Y Yield Rises on Tariff Truce Extension

China’s 10-year government bond yield rose to around 1.73% on Tuesday, as investors shifted toward riskier assets following news that the US and China had agreed to extend their tariff truce by 90 days. The move, signed by President Trump on Monday, delays steep duty hikes until mid-November, keeping US tariffs on Chinese goods at 30% and Chinese tariffs on US goods at 10%, instead of a steep 145% and 125%, respectively—a scenario that could have amounted to a near trade embargo. The delay offers relief to exporters and retailers ahead of the holiday season and preserves lower rates on key imports. Sentiment was further lifted by news that Nvidia and AMD agreed to give up 15% of their China chip revenue to the US government in exchange for restored market access. Elsewhere, traders now await US inflation data later this day for fresh policy cues, as softer-than-expected readings could reinforce expectations of a more dovish Federal Reserve stance.