The Chinese yuan strengthened to its highest level since February 2023 as the PBoC maintains accommodative policy without signaling rate cuts.
The Chinese yuan rose to 6.7424 against the dollar, its strongest level in 19 months, driven by broad dollar weakness and lower US yields. The People’s Bank of China reinforced its accommodative stance but avoided explicit signals for policy rate or reserve requirement ratio cuts.
Ten-year Chinese government bond yields fell below 1.70% for the first time in a year following the PBoC’s mid-month liquidity injection. The Ministry of Finance also sold 50-year special sovereign bonds at an average yield of 2.2831%, reflecting stable demand.
The PBoC’s targeted support measures and resilient bond market underpin the yuan’s steady appreciation path amid global monetary policy shifts.