Treasury yields declined on Thursday as investors weighed the latest developments in global trade and President Donald Trump’s plans to fire Federal Reserve chief Jerome Powell.
The 10-year Treasury yield dropped 8 basis points to 4.307%, while the 2-year Treasury yield fell 7 basis points to 3.789%. One basis point equals 0.01% and yields and prices move in opposite directions.
Investor concerns eased after Trump indicated a softening of trade tensions with China, with US tariffs currently at 145%. Treasury Secretary Scott Bessent said there’s an opportunity for a big deal on trade between the US and China. However, China rejected talks, saying the US should cancel all unilateral measures if it wants to resolve issues.
On the other hand, investors received positive news about potential trade agreements with South Korea, which may be finalized as early as next week. Treasury Secretary Bessent expressed optimism after a successful bilateral meeting with Republic of South Korea officials.
Additionally, Trump’s threat to fire Powell appears to have subsided, easing concerns in the financial sector. Orders for durable goods jumped 9.2% in March, exceeding economists’ expectations, but had no impact on US Treasuries, suggesting investors see this as a sign of a stable economy rather than a renewed one.
Source: https://www.cnbc.com/2025/04/24/us-treasury-yields-trump-considers-reversing-high-china-tariffs.html