China factories return to growth as global bond yields climb together

China's factory activity expanded again in September, according to official PMI data, with services activity also strengthening. The improvement was linked partly to demand tied to artificial intelligence investment. It marks a turn after months of softer readings from the world's second-largest economy. The data landed the same week that government bond yields rose across major markets, from the U.S. to Europe, a move that typically reflects investors pricing in either stronger growth, less imminent central bank easing, or both. The dollar was also on track for a September gain, mostly at the euro's expense. Gold steadied after an earlier 1.6% gain, with the pullback in oil prices offsetting the pressure that higher Treasury yields usually put on non-yielding assets like gold. The mix of a healthier China PMI, rising yields, and firm gold suggests investors are not settling on a single narrative about growth or inflation risk heading into the fourth quarter.