2026.01.2003:45:45UTC+00China 10Y Yield Nears 1-Month Low

The yield on China's 10-year government bonds dropped to below 1.83% on Tuesday, nearing its lowest point in four weeks. This decline comes as investors assessed the recent policy decision by the People's Bank of China amid rising geopolitical tensions that negatively affected market sentiment. The central bank decided to maintain its one-year and five-year loan prime rates at 3.0% and 3.5%, respectively, continuing an eight-month trend of steady policy. This action underscores China's preference for targeted stimulus measures as the country's economic growth shows signs of slowing, with challenges in household spending and the real estate sector pressuring domestic demand. Instead of lowering benchmark rates, Chinese authorities are concentrating on specific initiatives to bolster private enterprises, small businesses, and technological investments. Concurrently, tensions related to Greenland have driven investors towards safer investments. Denmark is enhancing its military presence in Greenland, while President Trump has issued threats of tariffs against eight European nations in an effort to gain control over the region.