China 10Y Yield Stays Near 3-Week Low

China’s 10-year government bond yield rose to around 1.78% on Monday, but remained near a three-week low hit last week, as investors digested subdued export data. The August report showed Chinese exports were up only 4.4% year-on-year, below forecasts of a 5% gain and marking the weakest pace in six months. Shipments to the US plunged 33%, as frontloading activity lost momentum under persistent tariffs. This came despite the extension of the tariff truce by 90 days, maintaining US tariffs of 55% on Chinese goods and 30% Chinese duties on US imports, though bilateral talks continue to struggle toward a breakthrough. The weak data has kept calls for additional fiscal stimulus in the fourth quarter alive. Meanwhile, investors are turning their attention to key data this week, including August consumer prices, which are expected to reignite deflationary concerns. Elsewhere, China is reopening its bond market to Russian energy firms, signaling closer ties with Moscow.