Treasury yields rise as China signals policy shift but bond market remains cautious

Treasury yields have increased by 2-3 basis points as China signals a shift in its monetary and fiscal policy. This rise occurs despite upcoming bond auctions and reflects skepticism in the market following lower-than-expected consumer price index numbers from China. While there are expectations for stimulus from China, previous efforts in October did not meet expectations. The bond market remains cautious, contrasting with a stronger performance in Chinese exchange-traded funds, which are up 6.8% in pre-market trading. Investors are awaiting more information from China's upcoming Work Conference to assess the effectiveness of potential stimulus measures.