Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 21, 2025.
Brendan McDermid | Reuters
The yield on the 10-year U.S. Treasury was unchanged on Tuesday as investors awaited signs of progress on the global trade front.
The benchmark 10-year Treasury yield was 2 basis points lower at 4.385%. The 2-year Treasury yield was 5 basis points higher at 3.804%.
One basis point is equal to 0.01%, while yields and prices share an inverse relationship.
Tensions between the world’s two largest economies appeared to escalate, as Beijing cautioned other countries against making agreements with the U.S. that could harm China’s interests.
However, investors got a positive sign Tuesday on news that Treasury Secretary Scott Bessent told a group of investors Tuesday that there “will be a de-escalation” in the trade war with China. Treasury yields moved off their lows as a result.
“No one thinks the current status quo is sustainable,” he said Tuesday during a meeting with investors hosted by JPMorgan Chase, according to a person in the room. The meeting was first reported by Bloomberg News.
However, investor sentiment was kept in check as Bessent also noted that, “If we walk out the door of negotiations and signed something in two or three years that looked like that, I would think that it’s a huge win.”
Meanwhile, undermining confidence in U.S. assets is U.S. President Donald Trump’s heightened pressure campaign on U.S. Federal Reserve Chairman Jerome Powell to lower rates.
U.S. Treasurys have seen a sharp selloff in recent weeks, which sparked speculations of the parties selling them. Investors have been keeping a close eye on the benchmark 10-year Treasury yield, which fell as low as around 3.86% this month before soaring.
