16.01.202604:01:18UTC+00China 10Y Yield Hits 3-Week Low

The yield on China's 10-year government bonds has decreased to approximately 1.83%, the lowest it has been since late December. This decline is attributed to the People's Bank of China's continued dovish policy approach. Deputy Governor Zou Lan remarked that the central bank perceives "some space" for reducing both the reserve requirement ratio and policy rates within the year. Beginning Monday, the central bank plans to cut rates on structural monetary tools—these are targeted instruments that support sectors such as small enterprises, technological innovation, and green development—by 25 basis points. Consequently, the one-year relending rate will drop from 1.5% to 1.25%. These strategic adjustments reflect a careful, targeted attempt to bolster an economy burdened by weak demand and structural imbalances. Concurrently, investors are turning their attention to a series of crucial economic data scheduled for release next week, which includes the Q4 GDP, industrial production figures, retail sales statistics, and the unemployment rate, along with the central bank's decision regarding loan prime rates.