China raised a net 1.45 tln yuan via sovereign bonds in the first quarter of this year, three times the amount raised in the same period last year. This record issuance is aimed at stimulating growth, addressing tariff impacts, and preventing an overheated bond market. The yield on China’s benchmark 10-year sovereign bond has risen to just below 1.8%, with expectations it will stay around 1.7%-2% by the end of Q2 2025.