China’s 10-year government bond yield has fallen to its lowest level since 2002, reaching 2.22%, as investors seek safe-haven assets amid concerns about the country’s economic growth. This trend reflects ongoing economic challenges, expectations for further stimulus measures, and ample liquidity in the banking system due to weak loan demand. The bond rally persists despite increased government borrowing for fiscal stimulus. While this reflects a subdued risk sentiment and anticipation of monetary policy support, some analysts caution against chasing long-term yields lower, suggesting they may be disproportionately low compared to potential GDP growth.