19.09.202503:21:09UTC+00China’s 10-Year Yield Extends Decline

China's 10-year government bond yield continued its decline on Friday, reaching approximately 1.85%. This movement extended the losses seen in the previous session as investors eagerly awaited the announcement of the loan prime rate over the upcoming weekend. Market participants are anticipating supportive measures from the central bank in response to concerns about a slowdown in economic growth and ongoing deflationary challenges. On the domestic front, fiscal revenue increased by 0.3% year-on-year for the first eight months of 2025, a slight improvement from the 0.1% growth observed from January to July. In addition, Vice President Han Zheng recently revealed plans to enhance the free trade agreement with ASEAN, highlighting China's commitment to strengthening ties with the 10-member association amid ongoing trade frictions with the United States. Concurrently, President Trump remarked that discussions in Spain were progressing favorably, with a framework for TikTok's divestiture agreed upon before his scheduled meeting with Chinese President Xi Jinping on Friday.