US Treasury yields dropped on Tuesday, following President Donald Trump’s return to office and a flurry of new executive orders. The 10-year yield slid by over 4 basis points to 4.566%, while the 2-year yield remained relatively stable at 4.272%. One basis point is equivalent to 0.01%.
The market was closed on Monday for Martin Luther King Jr. Day, allowing investors to digest Trump’s inauguration and subsequent signing of executive orders. The president signed over 40 orders, including some that touched on tariffs. Trump mentioned plans to impose 25% tariffs on Mexico and Canada from February due to their border policies, while also warning China with intensified tariffs if it doesn’t approve a TikTok deal.
However, Trump stated he’s not ready to implement universal tariffs yet, sparking investor interest in his pro-business policies. Housing data is expected this week, including the MBA 30-year mortgage rate on Wednesday and weekly jobless claims on Thursday. On Friday, investors will monitor the S&P Global Composite PMI Flash and existing home sales data for further insights.
Source: https://www.cnbc.com/2025/01/21/us-treasury-yields-trump-returns-to-the-white-house-.html