After recently hitting over two-decade lows, China’s 10-year government bond yield stabilized above 2.5%. That follows data revealing deflationary trends in December, with consumer and producer prices falling by 0.3% and 2.7%, respectively. Despite a sizeable trade surplus, yields remained low, with expectations of further economic support measures and potential cuts to key lending rates and reserve requirement ratios in H1 2024. Investors await upcoming GDP figures for additional insights.