Five-year government bond futures opened on a September contract price of 106.685 yuan, while the PBoC maintained a moderately loose stance amid weaker July 2026 manufacturing PMI data.
China's 10-year government bond yield fell to around 1.70% on Monday, moving close to its lowest level in a year as the start of government bond futures trading in Hong Kong added to Beijing's push to broaden market access. In its third attempt, China launched five-year government bond futures, with the September contract opening at 106.685 yuan per contract and a notional value of 500,000 yuan ($74,058). The move is part of broader efforts to draw more overseas investors and support yuan internationalization. Separately, the PBoC (China's central bank) said it would continue supporting the real economy with a moderately loose monetary stance, adjusting policy tools when needed and keeping liquidity ample. The backdrop remains fragile: a private-sector survey showed manufacturing PMI (purchasing managers' index) fell to a four-month low in July 2026, while official data showed the sector contracted for the first time since February.