China’s 10-year government bond yield rose toward 1.77% on Wednesday as investors returned from an extended holiday break, with sentiment shifting on the back of improving geopolitical signals and upbeat PMI data. US President Trump said there was “great progress” toward a “complete and final agreement with representatives of Iran.” He also noted that the United States would temporarily pause efforts to assist stranded vessels leaving the Strait of Hormuz, signaling a potential easing of regional tensions. Similarly, Trump said he plans to discuss the Iran situation with Chinese President Xi Jinping during their upcoming summit on May 14–15, in an effort to help de-escalate broader geopolitical risks. On the domestic front, a private survey indicated continued economic expansion, with the composite PMI rising to 53.1 in April from 51.5 in March, reflecting faster growth in both sectors, as manufacturing output increased to 52.2 from 50.8 and services activity rose to 52.6 from 52.1.