China’s Bond Yields May Drop to Record Low in 2026, SocGen Says

China’s benchmark bond yields may fall to their lowest-ever level next year as Beijing is likely to cut interest rates more than expected, according to Societe Generale SA.

Yields on 10-year bonds may fall to 1.5% by the end of 2026 as the economy struggles to shake off deflation due to weak consumption and property market woes, Wei Yao, chief economist for Asia Pacific at the bank, said in an interview on Wednesday. Authorities may also ease monetary policy to support growth while managing yields to ensure demand for government debt issuance, she said.