U.S. Treasury yields moved higher on Monday after the U.S. and China agreed to slash tariffs on each other’s goods, in a move welcomed by investors.
At 5:09 a.m. ET, the 10-year Treasury yield was up nearly 6 basis points to 4.433%, while the 2-year Treasury yield jumped 10 basis points to 3.996%
One basis point is equal to 0.01% and yields and prices move in opposite directions.
The U.S. and China negotiated a trade deal to lower tariffs, with both countries announcing on Monday the suspension of most levies implemented on each other’s imports.
Tariffs between both countries will come down from 125% to 10%, according to the terms of the deal. The U.S.′ 20% duties on Chinese imports relating to fentanyl are still in place, bringing total tariffs on China to 30% currently.
Previously U.S. tariffs on China stood at 145%, while China implemented 125% levies on U.S. goods.
“We had very productive talks and I believe that the venue,…
