China’s 10-Year Yield Ends 2-Session Gains

China’s 10-year government bond yield fell to around 1.73% on Thursday, breaking a two-session gain, as investors digested the latest PMI figures and the outcomes of the recently concluded Politburo meeting. Official data pointed to a loss of economic momentum in July, with the composite PMI dropping to a three-month low of 50.2 from June’s 50.7. Manufacturing activity remained in contraction, falling to 49.3 from 49.7, while the services PMI declined to 50.1 — its weakest reading in eight months — from 50.5. Despite the weak data, sentiment found some support from Wednesday’s Politburo meeting. The 24-member policymaking body vowed to bolster economic growth and curb “disorderly competition” in response to mounting economic challenges. However, leaders refrained from introducing broad-based stimulus measures, instead shifting their focus to addressing overcapacity across key sectors.