15.12.202504:11:26UTC+00China 10Y Yield Hits Two-Week Low

China’s 10-year government bond yield dipped below 1.84%, marking its lowest point in two weeks, as the release of lackluster economic data dampened market sentiment. The data for November revealed a slowdown in momentum, with retail sales growth decreasing sharply and significantly missing predictions, highlighting ongoing challenges in consumer demand. Industrial production also saw a slight decline compared to the previous month and failed to meet expectations, while fixed-asset investment contracted more than anticipated, experiencing its steepest downturn since the onset of the pandemic. The ongoing slump in the property market continued to weigh heavily on the economy, with real estate investment decreasing at an accelerated rate and home price declines becoming more pronounced in major cities. Despite these setbacks, economists suggest that the weakening investment and housing sectors have strengthened the likelihood of further fiscal and monetary measures early next year. These may include plans to issue ultra-long-term special government bonds to finance national security projects, upgrade equipment, and promote trade-in programs for consumer goods.