Treasury Yields Rise as U.S.-China Slash Tariffs in New Trade Deal
U.S. Treasury yields climbed on Monday after the United States and China announced a major trade breakthrough, agreeing to significantly reduce tariffs on each other’s goods.
The move sparked optimism among investors, signaling a potential easing of global trade tensions.
As of 5:09 a.m. ET, the 10-year Treasury yield rose nearly 6 basis points to 4.433%, while the 2-year yield surged 10 basis points to 3.996%. Yields on shorter-term Treasuries also saw sharp increases, with the 1-year yield up nearly 10 basis points to 4.163%.
Under the new deal, both countries will cut tariffs from previously extreme levels. U.S. tariffs on Chinese goods will drop from 145% to 30%, while China will reduce its levies on U.S. imports from 125% to 10%. However, targeted 20% tariffs on Chinese fentanyl-related imports remain in place.
Investors welcomed the news, interpreting it as a sign of de-escalation in trade tensions that have weighed on global markets in recent years. Yields, which move inversely to prices, typically rise in response to improving economic sentiment and expectations of stronger growth.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
