China’s 10Y government bond yield slipped to 1.67%, near three-month lows, after the PBoC cut key lending rates for the first time in seven months. Both the one-year and five-year loan prime rates were lowered by 10 bps to record lows of 3.0% and 3.5%, respectively, following broader easing measures earlier this month. The move comes amid weak economic momentum and renewed US-China tensions, after Washington warned against using Chinese semiconductors, prompting Beijing to accuse the US of undermining trade talks and engaging in discriminatory practices.