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Treasury yields fell on Tuesday with bond markets a little more reassured that a new front in the trade war won’t be opened in the near future.
The thirty-year Treasury yield dropped five basis points to 4.984% as stock futures surged. Meanwhile, the ten-year Treasury yield had shed four basis points to 4.475% at the time of publication.
Treasury bonds buttress the cost of U.S. borrowing at all levels, particularly consumers in the form of mortgages and car loans. Yields move in the opposite direction of bond prices, so a falling yield signals more confidence from investors in lending to the U.S. government. A higher yield means investors are demanding more in return for the risk of buying U.S. debt.
On Sunday, President Donald Trump walked back his threats to impose a 50% tariff on E.U. imports on July 1 following a phone call…
