Treasury yields are rising higher after President Trump announced a 90-day tariff reduction on imported Chinese goods to 30% from 145%. At the same time, China will lower its tariffs on imported U.S. goods to 10% from 125% for 90 days.
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“We had very productive talks and I believe that the venue, here in Lake Geneva, added great equanimity to what was a very positive process,” said Treasury Secretary Scott Bessent.
Treasury Yields Rise Across the Board
The U.S. 2-year Treasury yield is up by 12.1 basis points (bps) to 4.004% while the 10-year yield has risen by 8.6 bps to 4.461%. This reflects an increased appetite for risk and a shift away from safer assets given the recent trade developments. In addition, the price of a bond and its yield hold an inverse relationship.
The S&P 500 (SPX) is up on the news as well with a gain of 2.61%.
