China 10-Year Yield Extend Gains

China’s 10-year government bond yield rose to around 1.69% on Tuesday, marking its second consecutive session of gains, supported by improved risk sentiment following upbeat industrial profits data.

Profits at China’s industrial firms rose 1.4% year-on-year in the first four months of 2025, accelerating from a 0.8% gain in the January–March period amid policy support from Beijing.

In the latest trade news, China and the European Union are intensifying cooperation in response to rising US tariffs, with trade officials from both sides scheduled to meet again early next month during a WTO meeting in Paris.

Meanwhile, investors continued to assess Trump’s decision to delay the implementation of 50% tariffs on EU imports until July 9.

Traders now look ahead to upcoming PMI data this week, which may provide further insight into the health of China’s economy.