China: 10Y Yield Hovers Near 1-Year Low.

China’s 10-year government bond yield held around 1.70% on Friday, hovering near its lowest level in nearly a year as strong trade data underscored the resilience of the country’s external sector. While both export and import growth eased in July, they remained robust amid strong demand for AI-related technology products. Exports rose 23.9% year-on-year to USD 397.85 billion, surpassing market expectations, while imports climbed 27.5% to USD 285.35 billion, broadly in line with forecasts. As a result, China’s trade surplus widened to USD 112.5 billion from USD 97.7 billion a year earlier, above market expectations. Beijing recently unveiled fresh retaliatory measures against Washington, including tighter controls on drone and related technology exports, sanctions on seven US firms, and its first national security investigation tied to foreign trade. The move highlights persistent trade tensions ahead of a planned September meeting between Presidents Xi Jinping and Donald Trump.