Story perspectives

China's Yield Curve Steepens Amid Loose Monetary Policy Signals

12/10/2025

Summary

Story summary

China's sovereign yield curve is expected to steepen as leaders signal a moderately loose monetary policy for 2026.
The gap between 30-year and two-year government bond yields is at its widest in a year due to increased long-term debt issuance and reduced demand from key buyers.
The 10-year government bond yield has fallen to 1.84% as consumer prices rose to 0.7% year-on-year in November.
The Politburo plans to boost domestic demand while managing stimulus measures cautiously.
Analysts are awaiting the Central Economic Work Conference for additional policy guidance.

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Story summary

China's sovereign yield curve is expected to steepen as leaders signal a moderately loose monetary policy for 2026.
The gap between 30-year and two-year government bond yields is at its widest in a year due to increased long-term debt issuance and reduced demand from key buyers.
The 10-year government bond yield has fallen to 1.84% as consumer prices rose to 0.7% year-on-year in November.
The Politburo plans to boost domestic demand while managing stimulus measures cautiously.
Analysts are awaiting the Central Economic Work Conference for additional policy guidance.