China’s 10-Year Bond Yield Declines Amid Positive PMI Data
China’s 10-year bond yield declined to 1.87% following positive PMI data indicating growth in manufacturing and services. However, investor concerns persist over upcoming tariffs proposed by U.S. President Trump. In response, South Korea, China, and Japan are collaborating on a free trade agreement to strengthen regional ties.
China’s 10-year government bond yield experienced a decline, reaching 1.87%, following the release of the latest Purchasing Managers’ Index (PMI) data. On Tuesday, a private survey highlighted that China’s manufacturing activity surged to a four-month high in March 2025, exceeding market expectations. Moreover, official data published on Monday indicated that China’s composite PMI achieved a three-month peak, reflecting significant growth in both the services and manufacturing sectors.
While these positive economic indicators emerged, investors remained cautious about the upcoming imposition of reciprocal tariffs by U.S. President Donald Trump. He suggested that these tariffs could be implemented broadly across all countries, and reports indicate that he is advocating for a more aggressive stance regarding trade policies. In another development, South Korea, China, and Japan have formed an agreement to collaborate on a new free trade pact, which aims to enhance regional trade dynamics in anticipation of Trump’s tariff announcement.
In summary, China’s 10-year bond yield fell in response to favorable PMI data signaling growth in manufacturing and composite sectors. Nevertheless, investor sentiment is tempered by concerns regarding potential tariffs from the U.S. Meanwhile, an agreement among South Korea, China, and Japan to pursue a free trade pact highlights efforts to bolster regional trade amid these uncertainties.
Original Source: www.tradingview.com
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