China’s 10-year bond yield has increased to 1.88% following positive PMI data, highlighting economic growth. With the composite PMI rising to 51.4 and plans for a 500 billion yuan injection into state-owned banks, investor confidence is bolstered. South Korea, China, and Japan also agreed to pursue a free trade pact in anticipation of tariff changes.

China’s 10-year government bond yield has increased slightly to approximately 1.88%, as investors displayed a tendency to favor riskier assets following positive Purchasing Managers’ Index (PMI) data. Recent official statistics indicate that China’s composite PMI rose to 51.4 in March 2025, a modest increase from 51.1 in February, representing the highest level in three months.

Moreover, the services activity exhibited a notable increase, reaching 50.8 in March 2025, which exceeded expectations and marked the highest level in three months. Concurrently, factory activity experienced a surge to 50.5, indicating the swiftest growth in a year and affirming the efficacy of Beijing’s stimulus measures in driving economic recovery.

In a move to enhance financial stability, the Chinese government plans to inject 500 billion yuan into four major state-owned banks. This initiative aims to improve liquidity and bolster investor confidence amidst prevailing global economic uncertainties.

Additionally, South Korea, China, and Japan have reached an agreement to collaborate on establishing a free trade pact. This strategic partnership is intended to bolster regional trade as they prepare for impending tariff announcements from former President Trump’s administration.

In summary, China’s 10-year bond yield has risen due to positive PMI data, indicating economic growth driven by stimulus measures. The planned financial injection into state-owned banks aims to enhance liquidity and investor confidence. Furthermore, the trilateral agreement between South Korea, China, and Japan to initiate a free trade pact signifies a proactive approach to fostering regional trade despite global tariffs.

Original Source: www.tradingview.com

Related posts:

China, South Korea, and Japan Reinforce Free Trade Amidst U.S. Tariffs China, South Korea, and Japan Strengthen Free Trade Initiatives Japan Hosts Trilateral Talks with China and South Korea to Address Common Challenges Japan’s Support for Enhanced Security Ties with India and South Korea in the Indo-Pacific