China Bond Yields May Fall Back Toward Record, HSBC Asset Says

China’s government bond yields are likely to fall back toward a record low next year as an uneven economic recovery puts pressure on the central bank to cut interest rates, according to HSBC Asset Management.

The nation’s 10-year yield may fall by 20 to 25 basis points in 2026, said Michael Cross, chief investment officer for Asia in Hong Kong at the investment management business of the HSBC group. A decline of 25 basis points from the current level would bring the benchmark yield just below the current all-time low of 1.5958% set in February this year.