10-Year Treasury Yield Declines as Trump Raises Tariffs on China

The 10-year Treasury yield fell Tuesday as traders assessed global trade concerns and awaited additional economic data.

The benchmark yield declined more than three basis points, to 4.511%, while the 2-year Treasury yield fell less than five basis points, to 4.216%.

One basis point equals 0.01%, and yields and prices move in opposing directions.

Investors are anxious that continued trade tensions may hinder economic growth and raise bond prices.

China announced on Tuesday that it would retaliate with a series of retaliatory measures against the United States, including extra duties of up to 15% on some goods.

The action follows President Donald Trump's imposing a 10% tax on Chinese goods on Saturday. This is in addition to the 25% tariff introduced during his first term.

Traders were reassured Monday when Trump agreed to delay tariffs on Mexico and Canada for at least 30 days in exchange for both nations implementing measures to combat the trafficking of narcotic fentanyl into the United States.

On the economic front, they are looking forward to the January nonfarm payrolls report, which will be released on Friday and provide insight into the employment picture.