JGBS: Cash Bonds Little Chnaged, PPI Below Estimates

China’s SME Development Index fell 0.3 points m/m to 89.2 in April, data from the China Association of Small and Medium Enterprises showed. Ma Bin, executive vice president at the association, said officials must implement current policies and introduce incremental reserve policies in a timely manner, as well as ensure all levels of government implement the new private economy law. Macroeconomic perception's fell by 0.9 points while the labour index declined 0.3 points, the data showed.

China and the U.S. have agreed to establish a formal mechanism for economic and trade negotiations, with further details and a joint statement expected to be released on Monday, according to Xinhua News Agency. The high-level talks, held in Geneva over the weekend, were described as candid, in-depth, and constructive, with significant consensus reached and substantial progress made, Xinhua reported, citing China’s top trade negotiator, He Lifeng.

Several regional small and medium-sized banks in China have lowered deposit interest rates in a bid to further reduce funding costs, according to Securities Daily. Following the adjustment, interest rates on certain banks’ three- and five-year medium- to long-term deposits have fallen below 2%. Analysts anticipate this downward trend will persist, citing ongoing pressure from narrowing interest rate spreads, the report said.