US Treasury yields drop to six-month low amid global trade war fears
U.S. Treasury yields plummeted to a six-month low on Thursday following President Donald Trump’s announcement of his “reciprocal tariff” policy, which raised concerns about a potential global trade war.
This uncertainty sparked a significant flight to safety, leading investors to pull back from riskier assets, News.Az reports, citing CNBC.
The 10-year Treasury yield dropped by 11 basis points to 4.085%. The 2-year Treasury yield shed 9.5 basis points to trade at 3.809%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Investors digested the rollout of Trump’s tariff polices on Thursday, with him signing an executive order on Wednesday that imposed a sweeping tariff plan.
The measure sets a baseline tariff of 10% across the board, which will take effect April 5. It also includes a slew of steep tariff rates on more than 180 countries and territories, including 34% on China, 20% on the European Union, 46% on Vietnam, and 32% on Taiwan.
Investors will also be awaiting further economic data, including the ISM Services PMI in the morning and nonfarm payrolls on Friday. Federal Reserve Chairman Jerome Powell is also set to give a speech on Friday, which investors will monitor for clues on monetary policy in an uncertain economic climate.
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