M2 growth slowed to an 18-month low of 7.2% and yuan loan growth hit a record-low 4.8%. The 10-year government bond yield fell to 1.65% anyway, a day after factory-gate inflation reached 5.0%.
MacroMicro’s read is that oil and mining are driving factory-gate prices while downstream firms absorb the cost, leaving the PPI–CPI gap at its widest since May 2022. Source
Producer prices hit 5.0%. A day later the money data went the other way. The People's Bank of China (PBOC) financial statistics showed M2, the broad money supply, growing 7.2%, down from 7.5%. That is an 18-month low and under the 7.4% Reuters forecast. M1, the narrower measure of cash and demand deposits, slowed to 3.2% from 4.1%. Outstanding yuan loans grew 4.8%, which Reuters described as a record low.
