China’s 10-year government bond yield jumped toward 1.76% on Friday, following a near three-week low reached in the previous session, as risk sentiment deteriorated amid renewed trade tensions.
Mexican President Claudia Sheinbaum recently announced that her administration is considering implementing tariffs on imports from countries lacking formal trade agreements with Mexico—most notably China—as part of “Plan Mexico.” While Sheinbaum confirmed that further details on the affected sectors will be disclosed in due course, she did not specify the tariff rates or provide a timeline for the announcement.
In China, market participants are closely monitoring next week’s trade and inflation data for fresh insights into the country’s economic trajectory.
On the monetary policy front, the PBoC announced plans to inject CNY 1 trillion into the financial system via an outright reverse repo operation on September 5, 2025, to ensure sufficient liquidity within the banking sector.
