China’s consumer prices barely rose as deflationary pressures weighed.

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China’s consumer prices rose in December, underscoring deflationary pressures in the world’s second-largest economy, sending bond yields to record lows.

Consumer prices rose 0.1 percent last month from a year earlier, in line with Reuters’ average analyst forecast and the slowest in nine months. The reading released on Thursday was lower than last month’s 0.2 percent increase.

The producer price index, which measures factory-gate prices, fell 2.3 percent, slightly better than analysts had expected a 2.4 percent decline and a 2.5 percent contraction in November. December’s figure means the gauge has been in competitive range for 28 months.

China’s economy It has flirted with direct inflation for months, as a three-year property meltdown has weakened consumer demand and pushed the industry to overproduce.

Beijing is expected to achieve economic growth of 5 percent by 2024, driven by a growing mix of exports, price competitiveness in foreign markets, domestic inflation and government stimulus measures.

But analysts warn that the formula is wearing thin: Incoming US President Donald Trump is threatening tariffs that could cause a sharp drop in Chinese exports.

Beijing has struggled to stimulate domestic demand, although a Monetary policy pivot in September Mostly stock market oriented and seeks to increase family wealth through higher equity value.

The yield on the benchmark 10-year Chinese government bond is hovering at its lowest level since the start of the year, which analysts say reflects investors’ hopes for slower economic growth and lower prices.

Chinese stocks were mixed in early trading on Thursday. The benchmark CSI 300 index was flat, while Hong Kong’s Hang Seng index rose 0.4 percent. Yields on 10-year and 30-year sovereign bonds were flat.

In currency markets, the renminbi was at Rmb7.33 against the dollar after the People’s Bank of China set its daily trading rate at Rmb7.19.

The Chinese currency is allowed to trade within 2 percent of the daily rate set by the central bank.