U.S. Treasury yields were lower on Tuesday, as investors digested President Donald Trump’s return to the White House and a slew of new executive orders.
At 4:18 a.m. ET, the 10-year Treasury was lower by more than three basis points to 4.5723%. The 2-year Treasury yield was down by more than two basis points to 4.2508%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
Treasurys
Bond markets were closed on Monday for Martin Luther King Jr. Day. Investors watched closely as Trump was sworn in as the 47th president of the United States on Monday.
After his inauguration at the Capital, Trump signed over 40 executive orders at the Capital One Arena to an audience of 20,000 supporters.
Trump also made comments about tariffs as he was signing executive orders, saying he’s thinking of imposing 25% tariffs on Mexico and Canada from February because of their border policies. He also mentioned China, saying the country will be hit with intensified tariffs if it doesn’t approve a TikTok deal.
However, Trump said he’s not ready to impose universal tariffs yet. Investors will be on the alert to see if Trump enacts some of the pro-business policies he promised throughout his campaign.
Some housing data will be published this week. The MBA 30-year mortgage rate is due on Wednesday and weekly jobless claims are out on Thursday.
On Friday, investors will await the S&P Global Composite PMI Flash and the release of existing home sales data.
Elsewhere, the World Economic Forum in Davos, Switzerland, is underway. World leaders and CEOs will attend the event to discuss the world’s most important challenges and opportunities.