Beijing’s 10-year sovereign yield falls to 3% first time since 2016

Taking a hit: A bank employee using a money counting machine to count out 100 yuan notes at a bank in Shanghai. An escalation of the US-China trade war could send the yuan to as low as 7.7 per dollar, according to Societe Generale SA. — AFP

HONG KONG: China’s 10-year sovereign bond yield fell to 3% for the first time since 2016, joining a global rally of government debt as the nation’s economy slowed and its trade dispute with the US worsened.

The yield on the country’s most-active notes due in a decade fell 1 basis point to briefly trade at 3% in Shanghai. Escalations in the trade war since April have put a damper on sentiment in equities, helping spur a rally in Chinese sovereign bonds.