In the early session on Tuesday, yields in China's bond market initially fell slightly before fluctuating. The overnight drop in oil prices temporarily eased inflation concerns, but overall market sentiment remained cautious.
The yield on the active 10-year government bond stood at 1.8415%, a slight decrease of 0.04 basis points from the previous close, while the 30-year government bond yield was at 2.3040%, down 0.2 basis points. Yields initially fell but later retreated from gains.
Traders noted that the temporary retreat in oil prices improved market sentiment, though its effect was limited. With uncertainty in the Middle East persisting, fluctuations in energy prices continue to impact inflation expectations.
The market generally believes that monetary policy will maintain a stable orientation, with short-term rates anchoring the long-term rates, limiting the upward space for yields.
