China five year yield touches record low after PBOC injection

The yield on China's five year government notes briefly touched 1.34 percent, heading for the lowest closing level on record, after the People's Bank of China increased its cash injection into the banking system, Bloomberg reported.

Why it matters: A record low five year yield, on Chinabond data going back to 2002, shows how much liquidity the central bank is supplying and how little compensation investors now demand in the middle of the Chinese curve, even as industrial profits rebound.

Data as of Bloomberg report of October 26, 2026, 10:01 p.m. EDT, read in its free portion on bloomberg.com; the article is paywalled after two paragraphs and no Bloomberg sign in was available, so the size, tenor and terms of the PBOC cash injection, which sit beyond the paywall, are not stated here. Single sourced, grade C. Developing item.

The yield on China’s five year government notes briefly touched 1.34 percent on Tuesday, heading for the lowest closing level on record, after the People’s Bank of China increased its cash injection into the banking system, Bloomberg reported. The record is measured on Chinabond data going back to 2002.

The move extends the compression across Chinese sovereign yields that has accompanied repeated central bank liquidity support, and it lands the same morning the National Bureau of Statistics reported industrial profits up 14.4 percent from a year earlier in September. Bloomberg’s report, in the portion that could be read, did not state the size or terms of the injection.

China five year yield touches record low after PBOC injection

Sources