China 10Y Yield Hits Fresh 2025 Low

China’s 10-year government bond yield fell to around 1.67% on Wednesday, hitting its lowest level since June 2025 as strong export growth reinforced the country’s external outlook. China’s trade surplus widened to $133.53 billion in September 2026 from $88.72 billion a year earlier, marking its largest surplus since January 2025. Exports surged 36.3% year-on-year to a record $447.18 billion, while imports rose 31.0% to an all-time high of $313.66 billion. Meanwhile, investors weighed a continued recovery in consumer prices against intensifying cost pressures. Annual inflation edged up to 0.9% in September from 0.8% in August, reaching a three-month high. Producer price inflation accelerated to 5.0% from 3.8%, its strongest pace since June 2022. Renewed hostilities in the Middle East and risks to global oil supplies have pushed up input costs, squeezing corporate margins as businesses struggle to pass higher expenses on to consumers.