U.S. Treasury Yields Climb Amid U.S.-China Trade Tensions

U.S. Treasury yields edged higher as investors weighed escalating trade tensions between Washington and Beijing. The 10-year yield rose 2 basis points to 4.445%, while the 30-year yield jumped over 4 basis points to 4.981%. Market sentiment soured after President TRUMP accused China of violating a preliminary trade agreement, prompting swift denials from Beijing.

The dispute casts doubt on the 90-day tariff truce between the world’s two largest economies. Further complicating matters, Trump announced plans to double steel tariffs to 50% starting Wednesday. Legal challenges to existing tariffs added another LAYER of uncertainty, with courts delivering conflicting rulings last week.

"Predicting trade policy outcomes has become virtually impossible," noted Deutsche Bank analysts, highlighting the market’s struggle to price in rapid-fire developments. The yield curve steepened as investors repositioned for prolonged economic uncertainty.