29.04.202603:36:53UTC+00China 10Y Yield Extends Decline

China’s 10-year government bond yield slipped to around 1.75%, extending the previous session’s decline as investors moved into safer assets amid ongoing tensions in the Middle East and renewed friction between the US and China. Uncertainty surrounding stalled US–Iran negotiations and the security of the Strait of Hormuz—along with reports that President Trump is dissatisfied with Iran’s latest proposal—has unsettled energy markets and intensified inflation worries via higher oil prices. In China, producer prices rose 0.5% in March, the first increase since September 2022, supported by higher global commodity prices and strengthening domestic demand. At the same time, the US has stepped up scrutiny of China’s relationship with Iran, sanctioning a major Chinese refiner and warning Chinese banks of possible secondary sanctions. Bilateral tensions were further exacerbated after Meta Platforms was blocked from acquiring AI startup Manus, underscoring Beijing’s tighter control over strategic technologies and the rollout of new supply chain and export compliance measures.