China’s 10-year government bond yield remains stable at 1.79% after a recent surge due to Trump’s tariff announcement. Investors are cautious ahead of the upcoming “Two Sessions”. This parliamentary meeting is expected to focus on policies aimed at stimulating economic growth and managing U.S.-China trade tensions.

The yield on China’s 10-year government bonds has stabilized at approximately 1.79%. This follows a significant increase triggered by U.S. President Donald Trump’s recent announcement regarding an additional 10% tariff on Chinese imports. Scheduled to commence on March 4, 2025, this tariff is expected to place substantial strain on China’s export-reliant economy, which heavily depends on free trade.

During this period, investors appear to be exercising caution, refraining from making substantial investments ahead of the upcoming “Two Sessions” next week. This annual gathering of China’s parliament is expected to unveil a policy agenda aimed at revitalizing economic growth. Central to these discussions will be the restoration of domestic confidence, addressing existing economic challenges, and effectively managing the ongoing trade and technological competition with the United States.

In summary, the stability of China’s 10-year bond yield reflects a cautious investor stance, particularly in light of impending tariffs imposed by the U.S. The forthcoming parliamentary sessions are anticipated to address critical economic strategies, emphasizing recovery and trade management amid existing tensions with the United States.

Original Source: www.tradingview.com

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