A trader works on the floor at the New York Stock Exchange on May 12, 2025.
Brendan McDermid | Reuters
Treasury yields traded relatively flat as investors continue to parse the recent China-U.S. trade deal and await key U.S. inflation data.
At 6:19 a.m. ET, the 10-year Treasury yield was up under a basis point to 4.449%, while the 2-year Treasury yield fell 2 basis points to 3.983%.
One basis point is equivalent to 0.01%, and yields and prices have an inverse relationship.
The U.S. and China on Monday reached a trade agreement to reduce tariffs, announcing that they will suspend the majority of duties on each other’s goods for 90 days. Under the new agreement trade agreement, “reciprocal” tariffs between both countries will be cut from 125% to 10%.
While Monday’s news was relatively positive, it is a testament to the “volatile and chaotic nature” by which policy continues to be made in the United States, said Pepperstone’s senior…
