China’s 10-Year Yield Rises Amid Inflation Data

China’s 10-year government bond yield rose toward 1.80% on Wednesday, as investors assessed the latest inflation reports. Consumer prices declined by 0.4% year-over-year in August, after a flat reading in the prior month and above market expectations of a 0.2% drop. Meanwhile, producer prices contracted by 2.9% from a year earlier, moderating from a 3.6% fall in July and in line with forecasts. This marked the 35th consecutive month of producer deflation but also represented the softest decline since April. The latest figures underscore Beijing’s ongoing efforts to boost domestic demand and curb excessive competition and price-cutting across key industrial sectors. Investors are now closely monitoring potential policy signals as the 14th NPC Standing Committee convenes its 17th session from today through Friday. On the trade front, US President Donald Trump urged the EU to impose 100% tariffs on Chinese and Indian goods to pressure Russia, with Washington ready to act unilaterally.