China deflationary pressures send benchmark bond yield to new low

Onshore yuan falls to lowest point in more than year despite stimulus packages

Yields on Chinse government bonds have been falling for most of the year as the country's central bank battles a slowdown in economic growth. © Reuters

WATARU SUZUKI and ECHO WONG, Nikkei staff writers

December 3, 2024 13:50 JST

SHANGHAI/HONG KONG -- The yield on China's 10-year government bond fell below 2% for the first time Monday, underscoring the deflationary pressures facing the economy despite a flurry of stimulus announcements.

The yield on the 10-year government bond, which moves inversely to prices, dropped to a low of 1.979% during trading hours, according to Refinitiv data. This was the first time the yield has fallen below the 2% threshold since at least 2000, when Refinitiv data became available.