China 10-Year Yield Falls Amid Stalled US-China Trade Talks

China’s 10-year government bond yield dropped to around 1.70% on Friday, as investors sought safer assets amid stalled US-China trade negotiations.

Treasury Secretary Scott Bessent remarked on Thursday that talks with China are currently “a bit stalled” and may require direct intervention from President Trump and President Xi Jinping to make progress.

Although a temporary truce was reached two weeks ago, momentum has since waned.

Meanwhile, Washington has tightened export restrictions, effectively barring certain American firms from selling key technologies to China.

On the domestic front, investors are closely awaiting upcoming PMI data scheduled for release over the weekend, which is expected to provide important insights into the economic health of the world’s second-largest economy.