China 10-Year Government Bond Yield Hits Record Low of 1.6414%

The record-low 10-year yield is less a signal of easing than a symptom of demand outpacing supply of safe duration, and the split response among smaller banks is the real story: some are freezing new bond purchases over duration risk while others carry on unchanged. That divergence matters because small and mid-sized banks have been a marginal buyer base for government bonds, and a retreat by even part of that group would shift who absorbs duration at these levels. Whether the cautious camp grows or stays isolated is the open question.