China’s bonds are diverging from global peers as a fragile recovery and ample
liquidity keep yields anchored despite a worldwide debt selloff. The 10-year
government bond yield fell more than three basis points this week to 1.73%, the
lowest since mid-August last year, contrasting with rising US and Japanese
yields amid inflation concerns. April data showed a broad slowdown in
consumption, investment, and industrial production, supporting expectations for
policy easing. Analysts cite central bank liquidity support, weak growth
momentum, and contained inflation as key reasons for bond resilience.
