China 10-year bond yield drops below 3% for first since December 2016

China's 10-year yield prints lowest level since December 2016.
China's industrial production in July grew at its lowest rate since February 2002.

Omkar Godbole FXStreet Contributor

China's 10-year government bond yield fell below 3% in response to a weaker-than-expected macroeconomic data released at 02:00 GMT.

The markets last saw sub-3% yield in December 2016.

Dismal data

China's industrial production grew by just 4.8% in July, the worst growth since February 2002. Further, retail sales, a key metric of consumption, rose 7.6% in July, down from 9.8% growth in June.

With consumption struggling to compensate for the risks arising from the external sector, China's economy looks vulnerable for a deeper-than-expected slowdown in the near future.

As a result, the path of least resistance for the 10-year yield is to the downside.

The yield has come under pressure of late, tracking the slide in the bond yields across the globe and due to unrest in Hong Kong.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.