Treasury yields inch lower as investors weigh trade developments | US Two-Year Yields Near Lowest…

Explore the latest developments concerning Treasury yields inch.

Treasury yields inch lower as investors weigh trade developments

U.S. Treasury yields inched lower on Wednesday as investors monitored the latest developments in the U.S.-China trade war.

At 5:55 a.m. ET, the 10-year Treasury yield fell less than a basis point to 4.013%, and the  2-year Treasury yield was also less than one basis point down to 3.476%. The longer maturity 30-year Treasury bond yield fell 1 basis point to 4.610%.

One basis point is equal to 0.01% and yields and prices move in opposite directions.

Investors are keeping an eye out for the latest moves in the rift between China and the U.S.

President Donald Trump on Tuesday threatened China with a cooking oil embargo in retaliation for Beijing not buying U.S. soybeans.

Yields Hug Multi-Week Lows After Powell Speech

Bonds were remarkably resilient over the extended weekend given the moderate rebound in the stock market. As of Friday afternoon, yields and stocks swooned together in response to trade war escalation with China. Stocks recovered half those losses by 3pm, but were unchanged to slightly stronger. The morning hours suggested a modest sell-off, but buyers returned after Powell's speech. He didn't say anything that was obviously worth a rally, so perhaps it was the absence of hawkishness that helped.

Losing some ground after stronger open. MBS down 1 tick (.03) and 10yr up 0.2bps at 4.036. 

Slightly stronger after Powell speech.  MBS up 3 ticks (.09) and 10yr down 0.2bps at 4.031

The dynamic landscape of current events often brings forth significant discussions. Monitoring these developments provides crucial insights.

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