China’s 10-Year Yield Falls Amid Trade Data

China’s 10-year government bond yield fell to around 1.69% on Thursday, as investors reacted to the release of trade data. The country’s trade surplus rose to USD 98.24 billion in July 2025 from USD 85.27 billion a year earlier, though it was the smallest amount since April and fell short of the projected USD 105 billion. Still, exports grew by 7.2% year-on-year — the fastest pace in three months — easily surpassing forecasts of a 5.4% rise, fueled by a temporary reprieve from tariff pressures ahead of an August deadline. Meanwhile, imports surprised to the upside, climbing 4.1% annually — the strongest in a year — sharply contrasting with expectations of a 1% decline. Regarding the latest progress on the trade truce, President Donald Trump remarked that the US and China are “very close” to extending the current agreement, set to expire on August 12. He also indicated a willingness to meet with Chinese President Xi Jinping before year-end, should both sides finalize a formal agreement.