China’s 10-Year Bond Yield Rises Amid Economic Stimulus Efforts
China’s 10-year bond yield reached 1.94% following a plan to boost consumption. Retail sales increased by 4%, industrial production rose by 5.9%. However, unemployment hit 5.4%, a two-year high, exceeding expectations.
China’s 10-year government bond yield has increased slightly to approximately 1.94%, marking a near three-month high. This rise is attributed to the recent launch of a special action plan aimed at boosting consumption as well as stabilizing the stock and real estate markets. The initiative is designed to enhance household income, stimulate spending, and promote a higher birth rate, building upon previous government commitments to support domestic demand amid ongoing trade tensions.
In addition, traders are assessing positive economic indicators, including a 4% year-on-year growth in retail sales for the initial two months of 2025—the highest rate since October. Industrial production also reported a stronger-than-expected increase of 5.9%.
Conversely, the unemployment rate surveyed for February rose to 5.4%, reaching a two-year high, up from the previous rate of 5.2%, and surpassing market forecasts of 5.1%. This uptick in unemployment may raise concerns amid otherwise positive economic signs.
In summary, China’s 10-year government bond yield has experienced a marginal increase, influenced by the recent action plan aimed at consumption and market stabilization. Positive retail sales and industrial production figures have emerged, although the rise in unemployment presents a contrasting concern. Such mixed signals could influence market perceptions and economic strategies moving forward.
Original Source: www.tradingview.com
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