📊 China Government Bond Yield Thermometer

Updated: Sep 17, 2026

10-Year Bond

Yield 1.69%

Full History Pctl 98.2%Extremely Expensive

1-Year Pctl 94.0%Extremely Expensive

30-Year Bond

Yield 2.14%

Full History Pctl 96.4%Extremely Expensive

1-Year Pctl 92.4%Extremely Expensive

Key Spread

10Y-2Y Spread 0.43%

1-Year Value Pctl 26.1%Low (Flat)

📈 Multi-Window Valuation Percentile Table

💡 How to read: Yield indicators use price percentile (higher = expensive), spread indicators use value percentile (higher = steeper curve). Zones: >90% Extremely Expensive, 70-90% Overvalued, 30-70% Fair, 10-30% Undervalued, <10% Extremely Cheap. Spread percentile higher means steeper, lower means flatter/inverted.

IndicatorLatest1-Year3-Year5-Year10-YearFull HistoryValuation
1Y1.23%55.0%81.4%88.9%93.6%95.0%Extremely Expensive
2Y1.25%78.1%88.6%93.1%95.5%97.2%Extremely Expensive
3Y1.26%91.6%94.4%96.6%98.3%99.2%Extremely Expensive
5Y1.41%90.8%95.3%97.2%98.6%99.4%Extremely Expensive
10Y1.69%94.0%85.3%91.2%95.6%98.2%Extremely Expensive
30Y2.14%92.4%72.5%83.5%91.8%96.4%Extremely Expensive
10Y-2Y Spread0.43%26.1%50.9%40.8%42.9%25.5%Low (Flat)
30Y-10Y Spread0.45%41.8%80.6%68.7%44.4%38.7%Moderate
5Y-2Y Spread0.16%18.5%29.7%17.8%13.5%11.6%Low (Flat)
📌 Over the past decade, the 10-year yield is 1.69%, which is Extremely Expensive (full-history percentile 98.2%); the 30-year yield is 2.14%, Extremely Expensive (96.4%). The curve is relatively flat, reflecting cautious economic expectations.
📌 Three major spreads: 10Y-2Y 1-year percentile 26.1% (Low (Flat)), 30Y-10Y 1-year percentile 41.8% (Moderate), 5Y-2Y 1-year percentile 18.5% (Low (Flat)). Higher percentile means steeper curve, lower means flatter.
📌 Price percentile overview: 10-year 98.2% (Extremely Expensive), 30-year 96.4% (Extremely Expensive). >90% is extremely expensive, <30% is cheap. Historical extremes tend to mean-revert.

🧠 Summary & Tactical Reference

10-Year: Full History Percentile 98.2% (Extremely Expensive), 1-Year 94.0% (Extremely Expensive). 30-Year: Full History 96.4% (Extremely Expensive), 1-Year 92.4% (Extremely Expensive).

Spread: 10Y-2Y 1-year value percentile 26.1%, Spread low (curve flat), growth concerns.

Multi-Period Change Comparison

Period10Y Yield10Y Pctl10Y-2Y Spread
Week1.68→1.69% (+1bp)98.5%→98.2% (-0.3%)0.44→0.43% (-1bp)
Month1.69→1.69% (-0bp)98.4%→98.2% (-0.2%)0.46→0.43% (-3bp)
Quarter1.73→1.69% (-4bp)97.6%→98.2% (+0.6%)0.49→0.43% (-5bp)
Half Year1.83→1.69% (-14bp)96.3%→98.2% (+1.9%)0.51→0.43% (-8bp)
Year1.83→1.69% (-15bp)97.0%→98.2% (+1.2%)0.40→0.43% (+3bp)

📅 Valuation Regime Historical Duration Statistics

RegimeCountAvg (days)MinMaxMedian
Extremely Expensive423818522
Overvalued10291812
Fair1301814642
Undervalued761212221
Extremely Cheap43101912

📅 Percentile Band Duration Statistics (10% bins)

BandCountAvg (days)MinMaxMedian
0-10%43101912
10-20%4591941
20-30%6281842
30-40%8561462
40-50%9771683
50-60%11951502
60-70%12551462
70-80%9351382
80-90%6961642
90-100% (current)423818522

📈 Forward Return Statistics (Historical, Not Predictive)

Valuation ZoneSamples1M Avg1M Win Rate3M Avg3M Win Rate6M Avg6M Win Rate12M Avg12M Win Rate
Extremely Cheap414-0.15%50%-0.45%45%0.17%53%4.32%70%
Undervalued8920.31%61%1.53%64%3.12%78%5.01%82%
Fair23920.04%53%-0.10%52%-0.40%57%-1.06%48%
Overvalued896-0.06%50%-0.10%42%-0.51%57%-1.19%55%
Extremely Expensive15770.02%54%-0.07%57%-0.18%57%-0.17%50%

📊 Strategy Backtests (Actual ETF NAVs, 4bp cost, no leverage)

5-Year CGB ETF

StrategyAnn. ReturnSharpeMax DDAvg PosCum. ReturnRule
Buy and Hold2.67%1.09-4.96%100.0%40.82%Always fully invested
Simple Linear (10Y full)0.73%0.66-3.64%27.1%9.85%Position = 1 - full history price percentile
Extreme Reversal [30Y-10Y spread]6.19%3.67-1.16%62.2%122.75%Spread pctl <0.05 long, >0.95 flat, else 10MA
H+Trend [1Y full]4.33%3.21-0.73%40.1%75.09%Long above 10MA, position from 1Y pctl valuation H

10-Year CGB ETF

StrategyAnn. ReturnSharpeMax DDAvg PosCum. ReturnRule
Buy and Hold3.62%1.33-4.62%100.0%36.73%Always fully invested
Simple Linear (10Y full)0.54%0.55-2.49%17.5%4.80%Position = 1 - full history price percentile
Extreme Reversal [2Y full]6.75%3.87-0.77%50.7%80.00%2Y pctl <0.05 long, >0.95 flat, else 10MA
Extreme Reversal [30Y-10Y spread]8.15%4.41-0.77%63.4%103.46%Spread pctl <0.05 long, >0.95 flat, else 10MA

30-Year CGB ETF

StrategyAnn. ReturnSharpeMax DDAvg PosCum. ReturnRule
Buy and Hold5.45%0.81-11.44%100.0%17.87%Always fully invested
Simple Linear (10Y full)0.05%0.36-0.30%1.7%0.15%Position = 1 - full history price percentile
Extreme Reversal [30Y-10Y spread]20.01%4.57-1.48%60.2%87.10%Spread pctl <0.05 long, >0.95 flat, else 10MA
H+Trend [10Y-2Y spread]19.60%4.54-1.47%59.3%84.73%Long above 10MA, position from spread pctl valuation H

💡 30-year backtest period is short (2023-2026); extreme returns are not indicative of the future. All strategies no leverage, incl. 1bp fee and slippage each side. Valuation position factor constrained 0–1.

📎 YTD 10Y pctl high 98.5% low 95.5%; 10Y yield one year ago 1.83% (YoY -15bp)

Tactical Reference: Long-term allocators wait for pctl to retreat to 30%-70%; short-term players monitor 30Y 1-year pctl Extremely Expensive; shorten duration, watch for rising yields.