China’s 10-year government bond yield hovered around 1.828% on Monday, trading in a sideways range as investors weighed fresh geopolitical and trade developments, while China’s key economic data came in strong at the start of the year. Figures showed industrial output, retail sales, and fixed-asset investment all surpassed expectations, pointing to firmer momentum early in the year. However, challenges persisted as the property sector remained under pressure and unemployment ticked higher. Officials also cautioned that rising geopolitical tensions could cloud the outlook, particularly as the expanding Middle East conflict threatens global growth and trade. In the latest update, President Trump ordered strikes on Iranian military assets on Kharg Island and warned of further attacks on crude facilities. He also signaled a potential delay to his Beijing summit unless China helps reopen the Strait of Hormuz. Still, numbers suggest that China may be less exposed to the Hormuz disruption.
