China’s 10-year government bond yield fell to around 1.67% on Monday, its lowest level since July 2025, after the People’s Bank of China (PBOC) left benchmark lending rates unchanged for a 16th consecutive month at record lows. The one-year loan prime rate (LPR) remained at 3.0%, while the five-year LPR stayed at 3.5%. Policymakers face limited scope for further monetary easing as other major central banks have shifted toward tighter policy and the yield premium of 10-year US Treasuries over Chinese government bonds remains near a record high. Slowing growth, subdued inflation and weak credit demand nevertheless leave room for a rate cut before year-end. Chinese stocks also advanced, with the Shanghai Composite rising 0.4% to 3,925 and the Shenzhen Component gaining 0.8% to 13,743. Investors continued to monitor high-level US-China engagement after negotiators met on Sunday ahead of a summit between Presidents Donald Trump and Xi Jinping on September 24.