16.03.202603:19:09UTC+00China 10Y Yield Trades Sideways

China’s 10-year government bond yield hovered around 1.828% on Monday, moving sideways as investors assessed new geopolitical and trade developments against a backdrop of robust early-year economic data. Recent figures showed industrial output, retail sales, and fixed-asset investment all exceeding expectations, indicating firmer growth momentum at the start of the year.

However, underlying challenges persisted: the property sector remained under significant pressure, and the unemployment rate edged higher. Officials also warned that escalating geopolitical tensions could darken the outlook, particularly as the widening conflict in the Middle East threatens global growth and trade flows.

In the latest developments, President Trump ordered strikes on Iranian military assets on Kharg Island and warned of additional attacks on crude infrastructure. He also signaled that a planned summit in Beijing could be postponed unless China helps facilitate the reopening of the Strait of Hormuz. Even so, data suggest that China’s economy may be relatively less vulnerable to potential disruptions in the Hormuz corridor.