China’s 10-year government bond yield climbed to a near six-month high of around 1.92% on Thursday, as investors digested recent comments from a Deputy Governor of the People’s Bank of China. The official noted that global investors continue to show confidence in China’s bond market and highlighted ongoing efforts to promote the inclusion of Chinese onshore bonds as eligible collateral in Hong Kong and other international markets. As of the end of August 2025, China’s bond market had reached CNY 192 trillion, making it the second largest in the world. Currently, foreign investors hold about 2% of yuan-denominated bonds. The Deputy Governor also emphasized the PBOC's support for enabling more foreign institutions to engage in repurchase operations, aimed at improving the liquidity and efficiency of yuan bond usage. On the monetary policy front, the PBoC kept loan prime rates steady for a fourth straight month in September, holding the one-year at 3% and the five-year at 3.5%.