China’s 10-year government bond yield edged down to around 1.83%, trading in a narrow range as investors weighed conflicting developments on Middle East tensions. US President Donald Trump delayed planned strikes on Iranian energy infrastructure after what he described as productive talks between the two countries. However, Iran’s foreign ministry denied the talks shortly thereafter, adding that the country’s conditions to end the war had not changed. Tehran also said it had launched new attacks on US targets, while Israel continued its strikes on Iran, keeping geopolitical risks elevated and clouding the outlook for energy prices. Meanwhile, China stands to gain from the conflict due to its lower energy dependence and its edge in renewables. China’s Premier Li also vowed to boost imports of high-quality foreign goods and promote balanced trade, while PBoC Governor Pan sought to calm concerns over China’s trade surplus.
